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Chinese factories refused us orders and shipping prices soared tenfold, exacerbating US inflation
Source: | Author: Anna Qu | Publish date: 2021-09-09 | 1646 views | Share:
Chinese factories refused us orders and shipping prices soared tenfold, exacerbating US inflation

In recent months, our factories have received a large number of orders from the United States, but many factories have refused to accept orders from the United States. What's the matter? Don't Chinese factories want to make money?

In fact, this is also a helpless move. We all know that inflation in the United States remains high. Now the United States needs our goods very much to stabilize inflation. However, after accounting, many factories find that after accepting orders, they not only can't earn money, but also lose money. Among them, there are reasons for the rise of commodity prices and the tariffs imposed by the United States on Chinese goods, Another more important reason is the soaring sea freight prices, which makes many orders uncertain.


It is understood that since the second half of last year, world shipping prices have soared, and up to now, freight has increased seven times. In the past, the freight of a 40 foot container to the United States was about 13000 yuan, but now some popular routes have exceeded 130000 yuan, and the price has increased tenfold. Such outrageous shipping prices cause the freight to be more expensive than goods. Therefore, some orderers prefer to pay some deposit and reduce the order quantity, which makes the factories with meager profits even more afraid to accept American orders at will.


Many people will wonder why the sea freight price has soared? The reasons for this are very complex. Generally speaking, there are the following aspects:

First, the epidemic situation is the decisive factor leading to the sharp rise in shipping prices. Due to the poor response to the epidemic in many countries, factories can not operate normally, resulting in a large number of orders transferred to us, but the throughput of our port is limited and can not be improved indefinitely in a short time. According to statistics, in the first half of the year, our port throughput increased by 9.2% year-on-year, while our total foreign trade value increased by 27.1% year-on-year in the same period. It can be seen that the growth rate of our foreign trade volume far exceeds the growth rate of port throughput. This shows that our port is in overload operation and the transport capacity has reached the limit state. The rampant epidemic in European and American countries, coupled with the border control measures and labor shortage of various countries, led to the backlog of goods in their ports, resulting in the detention of a large number of containers, exacerbated the problem of container shortage and further promoted the sharp rise of freight rates.


Second, shipping is a very cyclical industry. The price cycle of shipping often fluctuates with the economic cycle. Before the outbreak of each economic crisis, it is a stage of soaring shipping prices. For example, 1997, 2000 and 2008 were the peaks of shipping prices. Economic logic explains that on the eve of the economic crisis, the global economic bubble is more serious than the overheated period. This will make everything rise in price, and the price of shipping is no exception.


Third, the large printing of money by the Federal Reserve is an important reason for the sharp rise in shipping prices. At present, the world economy has entered a K-shaped tearing recovery period. Some local economies are overheated and some local economies are in recession, which can be described as a double heaven of ice and fire. Half of the current US dollars are printed by the Federal Reserve over the past year. Such a large amount of dollars has promoted the rise of global commodity prices, worsened global inflation and put world trade in an abnormal state. With the support of trillions of dollars, Americans are purchasing heavily all over the world, and the balance between supply and demand is broken, resulting in tight transportation capacity and soaring freight prices.

At present, the rising sea freight price makes the United States very painful. The already high inflation, driven by the high freight, adds fuel to the fire and makes the American people face higher commodity prices.

Thus, it can be seen how important the manufacturing industry with perfect categories is. If the United States can produce those goods by itself, it will not be so dependent on imports, and its inflation situation will be improved. This also gives us enlightenment. It is worth thinking about how we should go back.