“More than half of the textile companies are struggling to receive orders and set prices…The market has been going downhill since August this year! I only hope that orders will be received in September. If we can come down, the fabric business will be a little better!” These are the inner thoughts of a textile entrepreneur the editor has come into contact with. But maybe everything is so counterproductive!
August is coming to an end, and the fact that it is the slowest season this year is a foregone conclusion. There may be an improvement after September. After all, no matter how slow the peak season is, it is still peak season, and demand will increase compared to the first half of the year. But in this sensitive season when there is no good news, the textile industry is having an extremely embarrassing time!
Under the epidemic situation, shipping continues to be tense and freight rates have skyrocketed
For foreign trade Companies and their customers are under tremendous pressure
It was learned that last year, the freight rate of each box of products sold from China to North American ports was At US$3,000 to US$5,000, many companies still have relative profit margins. Currently, the freight from China to the North American market is as high as US$15,000 to US$20,000. In addition, the Global Container Freight Index shows that the sea freight price from China/Southeast Asia to the east coast of North America exceeds US$20,000, a year-on-year increase of more than 500% from a year ago.
According to introduction , the cost of exporting products is now three times that of the beginning of this year. “The sea freight is already greater than the value of the goods, and there is basically no point in exporting.”
The survey found that many foreign trade companies are facing various pressures, including skyrocketing freight costs and raw materials. Even some companies with sufficient orders do not feel relaxed.
In terms of cargo delivery efficiency, both factories and overseas customers continue to wait and see. In the past, manufacturing companies ramped up production at full capacity based on order volume and quickly delivered orders to overseas customers within a month. However, currently, everyone needs to always pay attention to port and shipping dynamics. “(Maritime) routes, like airplanes, require timing, rationing and pricing. The biggest problem currently encountered is that timing is impossible. In the past, ships’ departure times were planned, such as fixed departures in the morning, afternoon and evening. , now most of them are disrupted, and ships in almost every port are unpredictable.” A senior source from a port company in South China told reporters.
According to the person in charge, global epidemic prevention is still severe, which has led to low logistics efficiency. In the past, one ship The inspection at the dock only takes 10 hours. Now, in addition to loading and unloading, quarantine and disinfection are also required. The crew must wait for the nucleic acid test report to be released before they can work. The same ship may take 20 hours to complete the operation, which leads to the next The wait for the ship was extended.
“The order delivery cycle now is slower than in the past. We have to collect a deposit (total) after receiving the order. 30% of the price of the goods), basically it takes two months to deliver.” Zheng Bo told reporters that the company’s customers in Germany and Spain had placed orders for half a year at the beginning of this year, and then each party The order volume will be adjusted monthly based on changes in the epidemic situation and shipping situation.
But after the goods are delivered, transportation problems cannot be controlled. This is a common problem encountered by many foreign trade companies. “Transportation problems are now mainly focused on two aspects, one is cabinets (containers), and the other is cabins (slots).” Zheng Bo said that now colleagues have to compete for both shipping slots and containers. Sometimes, the slots are not available. However, the freight company was unable to provide empty containers, causing the goods to be unable to be loaded and transported.
In August, when inventories were supposed to be reduced
Downstream gray fabric inventories were reduced. Going higher, the start-up rate dropped significantly
The start-up rate of weaving was supposed to be in mid-to-late August when domestic and foreign orders were placed. But there is a downward trend.
Recently, water-jet loom companies in Changxing, Anhui, and Siyang in northern Jiangsu have experienced load reductions and shutdowns to varying degrees. If the terminal textile and clothing market does not improve as expected in September, the parking period may be extended. Due to the restriction of sewage discharge in June and July, the local water-jet loom enterprise in Shengze restricted the operation rate of local looms to drop to around 30% to 50%. However, after the restriction ended, the operation rate was difficult to significantly increase and only remained at 30%. About 70%. The circular knitting machine returned from the Spring Festival holiday because the price of spandex, the upstream textile raw material, continued to rise to new highs. Orders from buyers and sellers were unable to negotiate due to price many times, resulting in a start-up rate of around 50-60%. In addition, Zhangcha’s circular knitting machine’s window for exports also declined during the same period this year. There have been cases of missing orders and insufficient availability. In addition to rising prices of textile raw materials, the lack of availability is mostly caused by a lack of new orders at home and abroad.
Warp knitting machine companies ushered in the dawn of joy in June this year. New orders for autumn and winter from abroad were placed to domestic weaving companies. Enterprises, most enterprises are busy day and night rushing to make orders. When new orders are being delivered one after another, most enterprises are optimistic that the inventory of regular warm gray fabrics will rise to a high level in the second half of the year. Downstream bosses and cloth merchants are actively stocking up. However, entering July is like a slap in the face, and new orders After August, the industry received news that different production bases had to reduce their burden due to the pressure of high inventory of gray fabrics.
In addition, after July, gray fabric factoriesStock prices continue to rise, and the upward trend may continue into September. Entering August, when the inventory days of gray cloth should have declined during the same period, it has shown a significant upward trend. Most downstream users are beginning to worry about the market situation in the second half of the year, and have to consider stopping operations to reduce inventory pressure. The current inventory pressure on gray fabrics in the weaving industry is particularly evident.
For small and medium-sized manufacturers under this year’s epidemic, whether their products are stranded in foreign port warehouses or Domestic warehousing sites have squeezed the capital costs of enterprises, and the pressure is self-evident. This year’s sales situation is more difficult than in the past, but most textile workers still choose to stick to it and wait for their “peak season.”
</p
