SOURCE / ECONOMY
Ministry pledges to help Chinese factories deal with pressure from unprofitable overseas orders
Published: Aug 26, 2021 05:11 PM
 
A Yemeni trader selects tea pots while communicating with his Saudi Arabian client via video link at the Yiwu International Trade Market in Yiwu city of east China's Zhejiang Province, Jan. 14, 2021. Facing the onslaught of COVID-19 pandemic, authorities in Yiwu City, dubbed world supermarket, manage to strick a good balance between coordinated epidemic prevention and control and smooth economic growth.Photo:Xinhua

A Yemeni trader selects tea pots while communicating with his Saudi Arabian client via video link at the Yiwu International Trade Market in Yiwu city of east China's Zhejiang Province. Facing the onslaught of COVID-19 pandemic, authorities in Yiwu City, dubbed "world supermarket," manage to strick a good balance between coordinated epidemic prevention and control and smooth economic growth.Photo:Xinhua

Surging raw material prices, skyrocketing shipping fees and insufficient transport capacity are affecting some Chinese manufacturers of Christmas products as they are suffering from unprofitable overseas orders, Chinese Ministry of Commerce (MOFCOM) spokesperson Gao Feng said on Thursday. 

"According to our knowledge, the peak period for Christmas product shipments falls from June to August every year. Considering the risks of backlogs at ports this year, most overseas customers chose products and placed orders online," Gao told regular press conference in Beijing. 

"Some of the orders were shipped and delivered in advance, compared with previous years. Due to the difficulty of booking cargo space and high shipping fees, some goods were piled up in domestic warehouses, putting pressure on companies," Gao added. 

The purchasing season for Christmas items shipped to the US has already passed, as US customers usually place orders in May and June in Yiwu, the world's largest trading center for daily consumer goods, in East China's Zhejiang Province. It is now the shipping season. 

Demand remained unchanged this year compared with last year in Yiwu, a Global Times reporter learned from local merchants. 

Official local statistics showed that orders for Christmas decorations and stickers in Yiwu rose in May, but they were still below the same period last year. In July, the sales of Christmas products slowed.

These products usually go to North America from Ningbo Zhoushan Port in Zhejiang. However, serious ship congestion at American ports caused disruptions starting early this year. 

Yiwu International Land Port Group Co also pointed out that the port's backlog, delayed deliveries and a shortage of cargo space had worsened. 

To deal with the difficulties, Gao said that MOFCOM has adopted measures to increase container supply, expand shipping capacity and enhance international cooperation, working together with other departments including the Ministry of Transport, Ministry of Industry and Information Technology and the State Administration for Market Regulation. 

Local governments have also strengthened shipping services for small and medium-sized enterprises to reduce losses and lower costs, according to Gao. 

"We will continue to work with relevant departments and local governments to further study effective measures, stabilize foreign trade and international logistics, and strengthen cooperation with trade partners to jointly deal with the challenges," he noted.