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Aug 17,2021

The peak season is ahead! Popular Christmas items are sold out only in August! Foreign trade companies race against time

Yiwu, Zhejiang is the world's largest distribution center for Christmas products. This time in previous years was the peak season for Christmas products. However, when the reporter visited recently, they found that there are not many buyers in the Yiwu market. Why?


Yiwu, Zhejiang: Christmas products are shipped ahead of schedule, hot products are out of stock

In the Christmas products area of Zhejiang Yiwu International Trade City, a buyer from Ningbo, Zhang Jun, is choosing Christmas products and preparing to send them to Russia, India and other places.


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To Zhang Jun's surprise, many popular products are no longer in stock. The merchants told him that since February and March this year, buyers from all over the country have begun to place orders and stock up, and the peak sales season has come ahead of schedule.


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Su Xueqin, a merchant in Yiwu International Trade City, Zhejiang: Two or three months earlier than last year, customers only came to purchase in May and June last year, and they came in February and March this year. The order volume in May and June this year could reach 8 million yuan. -10 million yuan.


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It is understood that Yiwu, Zhejiang is the world’s largest distribution center for Christmas products. Two-thirds of the world’s Christmas products come from here. August was the busiest time of the previous year. Nowadays, buyers are scattered and many popular products are also sold. When it was empty, the Christmas supplies purchasing season came to an end ahead of schedule. In addition to Yiwu, major export ports for Christmas supplies such as Ningbo also ushered in a small peak in the export of Christmas supplies in the second quarter of this year.


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Meng Yuefeng, Section Chief of the First Inspection Section of Cixi Customs under Ningbo Customs: The export volume of Christmas products has gradually increased since May, and the export volume of the entire second quarter increased by nearly five percentage points compared with the same period last year.


Tight capacity, rising freight rates, foreign trade companies racing against time

Although there is still a long time before the traditional Western holiday Christmas, the Christmas shopping season has come to an end ahead of schedule. What are the reasons behind the significant advancement of the procurement time by foreign trade companies?

The reporter learned that under the influence of overseas epidemics, shortage of dock workers, terminal congestion, and suspension of voyages have occurred from time to time, the turnover efficiency of ships has declined, and the relationship between supply and demand has been severely unbalanced. Since the third and fourth quarters of last year, there has been a shortage of space and hard-to-find containers. Not only has the situation not eased, but the shortage of capacity is still increasing.


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Christmas products are time-sensitive products, and once a certain period of time has passed, they will fall into their hands. Therefore, foreign customers and domestic foreign trade companies have made preparations early, placing orders and shipping them in advance.


In addition to racing against time, foreign trade companies also have to race against freight rates. The impact of the epidemic has caused ocean freight rates to continue to rise. Just a few days ago, the Baltic Global Container Freight Index showed that ocean freight prices on the China-US East route exceeded 20,000 per 40 feet. The U.S. dollar increased by 500% year-on-year; in addition, the Shanghai Export Container Freight Index, which was announced on August 13, representing spot prices, was recorded at 4,281.53 points, continuing to hit a record high, up 400% from last year's lowest point. above.


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