Mason shipping prices dive across the board
The price of Maison Shipping has dropped significantly across the board. The price has dropped from 30 yuan/kg to less than 20 yuan/kg. The basic quotation is at 16 yuan/kg, 17 yuan/kg, and even some freight forwarders’ quotations are as low as 13 yuan/kg. kg, 14 yuan/kg.
As soon as the news of the ever-tightening Maison price plunged, cross-border sellers shouted: Finally they are about to stand up!
As for the reason for the price reduction, there are different opinions:
There is a saying that the reason for the price reduction is that Mason came to search for a super-large ship and has a lot of positions, so they are all sold at low prices, but they will not continue.
Another seller said that due to the limited power policy, many factories have been unable to ship goods in time recently. In order to avoid empty containers, freight forwarders have reduced prices and received a large number of goods.
Many people in the industry have analyzed that it may have something to do with the recent power-cutting orders issued in various places.
Insufficient capacity and reduced shipments
Electricity rationing order may become the main reason for logistics price cuts
In response to the requirements of the National Development and Reform Commission, in order to ensure the completion of energy consumption intensity reduction targets, various localities have introduced policies to respond. Limiting production and electricity is one of the most important control methods.
For a time, Jiangsu, Qinghai, Guangxi, Zhejiang and many other places have issued the most stringent power-cutting orders, and some enterprises' production capacity has been affected. In Dongguan, factories generally receive notifications to open two and stop five, while some small and micro enterprises have to open one and stop six.
The curtailment of electricity is not actually due to the fact that electricity is not enough, but the country's macro-policy regulation.
According to the latest news from Global.com, the power supply of the entire country is abundant. China’s current total installed power generation capacity is as high as 2.2 billion kilowatts, which is about twice that of the United States. This total power generation is used to support about 70% of China’s GDP in the United States. , Even considering that its manufacturing industry accounts for a large proportion, there is still a high room for realization.
Because foreign trade exports have been squeezed out of most of the profit margins by other countries, the current foreign trade industry seems to be prosperous, but it has not been conducive to the development of my country's economy and trade for a long time. The current power rationing is also through national-level intervention to temporarily slow down the export boom, and it is also to avoid some potential risks in future trade development.
The reduction of ocean freight for this round has nothing to do with the shipping company's looting of cargo. Power cuts in factories in some parts of China are already an established fact. As for the duration of this round of power cuts, it is still unclear. But what is certain is that power cuts in factories will inevitably affect the output of products.
Under the condition of restricting electricity use, the delivery pressure of the factory is high, and the supplier's delivery problem caused by the limited capacity is inevitable.
It is reported that some companies have reduced their power consumption by 30% every day, or even strictly reduced their capacity by 50%, and their production capacity has plummeted by nearly half. It can only be cut in half.
An industry insider analyzed that for manufacturing companies, power curtailment will lead to a decrease in operating rate. If a long period of power curtailment produces, it will affect not only delayed delivery, but also market raw material supply, changes in market conditions, and even logistics. Prices are also affected.
Under the power curtailment order, the factory stopped production and reduced production, and the shipment of the entire cross-border export bank dropped significantly in the short term.
Shipping companies foresee a decline in cargo volume in this wave, so they are rushing to cut prices and grab cargo. Ensure that the latest sailing schedule can be full.
How do cross-border sellers deal with the complex and changeable situation?
With ocean freight rates rising continuously for several months, this drop in ocean freight rates is undoubtedly good news for cross-border sellers, who can save on transportation costs. When supply exceeds demand, sellers can increase prices to hold on or even increase their profits.
This round of power cuts in the factory and production restrictions may result in a reduction in the number of products produced in a short period of time. Sellers don’t have to worry too much, even if they sell fewer goods, it doesn’t mean that profits won’t go up. However, this will put a new test on the selection and operation of seller friends.
From another perspective, Made in China no longer only pursues quantity, but focuses more on quality. For Chinese sellers going overseas, it will be more competitive in the international market!
