From Depression To Outbreak! Textile Enterprises This Half A Year: Orders To The Spring Festival, Double The Price Of Shipping, Difficult To Get A Hold!

Empty in the first half of the year, busy in the second half!

Affected by the epidemic situation in the first half of the year, the overall situation of offline enterprises was not optimistic. Textile factories and textile enterprises, one after another, closed down due to problems such as capital, inventory and workers.

Many people even think that they have no chance to make money this year and start to think about career change. After all, a large group of people are waiting to be paid. But recently, with the return of "emergency" orders in India, the arrival of double 11 and double 12, the textile market has taken a turn for the better.

Foreign orders began to be placed in an endless stream. With the stability of the epidemic situation, the domestic market is gradually recovering. Even some countries and regions show retaliatory centralized orders. Therefore, it can be said that this period of time is an opportunity for the domestic textile industry to make money.

Difficult February and March: from unable to resume work to full resumption of work, to forced stagnation

Wendy works for a home textile company in the United States, which is headquartered in New York, but most of the suppliers are in China. She is responsible for purchasing home textiles such as bedding, curtains and towels from factories.

After the factory delivered goods in February, the workers failed to send the goods in time. She can only coordinate from the process, as far as possible to give customers a clear delivery time, at the same time, the factory is also in the process of returning to work.

By the first ten days of March, the factory basically returned to work. However, under the influence of the international epidemic, customers in the United States have been canceling orders.

"For factories, they started late, but by March they had already done half or part of it, or even just finished. Well, the goods won't be delivered. Put it here, hit the factory. " Wendy told Red Star News.

She even witnessed the unemployment of her peers. "There are many organizations like ours in China, all of which are representative offices and offices of foreign trade companies in China. Some of them closed down their offices in China and laid off their employees.

Turning in June, orders have soared and have been scheduled for the Spring Festival next year

"Since the middle and late June, orders are very urgent and a lot of orders are coming." Wendy's second half of the year suddenly became busy. She said she was busier than the busiest time in previous years.

The factory has also entered a busy state, and now their factory's scheduling has reached February next year, all of which are foreign trade orders, and there is no surplus capacity before the Spring Festival. Even if there is a door-to-door order, they can only bear the pain to refuse, leave the contact information of the intended partner and seek cooperation next time.

According to media reports, in recent months, due to the spread of new crown pneumonia, many large export textile enterprises in India were unable to deliver goods normally, and orders that should have been produced in India were transferred to China.

Although most of Wendy's company's suppliers are in China, it also purchases some products from India and Pakistan. According to what she learned, most of India's and Pakistan's factories only recover 30-40% of their production capacity, and the best restored factories can only reach about 60%.

In Wendy's view, the sharp increase in orders in the second half of the year is due to the fact that people in countries like the United States have cancelled many social activities and stayed at home longer, thus increasing the demand for home textile products.

In the busy sea transportation, the first hold is hard to find, and the cost is rising

According to the data released by the General Administration of Customs of China, in September 2020, China's textile and clothing exports reached 28.37 billion US dollars, an increase of 18.2% on a month on month basis, including 13.15 billion US dollars of textile exports, a 35.8% increase on a month on month basis, and 15.22 billion US dollars on a month on month increase of 6.2%. According to the customs data from January to September, China's textile and garment exports totaled US $215.78 billion, an increase of 9.3%, of which textile exports were US $117.95 billion, an increase of 33.7%.

According to the foreign trade data of the customs, China's textile export industry has witnessed rapid growth in the past few months. At the same time, with the approaching of the peak season at the end of the year, the export orders of foreign trade have increased rapidly, resulting in a substantial increase in international ocean freight, and the phenomenon of cargo explosion and container dumping frequently occurs.

According to the feedback from relevant personnel of Alibaba international platform operation, "from the data point of view, the recent international trade orders are growing rapidly. Alibaba has formulated a double hundred standard, which is to serve 1 million TEUs and 1 million tons of incremental trading commodities.".

On October 23, the Red Star capital Bureau consulted a number of international shipping logistics companies and learned that: at present, most of the quotations from Dalian to Los Angeles port are 2800-3900 US dollars / container (the prices vary according to the size of the container and the type of goods).

Angela, the head of a logistics company that specializes in shipping routes to and from the United States, told the Red Star capital bureau that in previous years, the price of the sea route from Dalian to Los Angeles was generally between us $1000-2000 / container, but this year, the price has been rising since May and June.

Foreign trade data high growth, industry insiders: China's strong products to the extreme

According to the public data, the export volume of China's textile yarn, fabrics and products reached US $13.352 billion in September, a year-on-year increase of 34.69%, and a high growth for many consecutive months. From January to September, the cumulative export volume of textile yarns, fabrics and products reached 117.95 billion US dollars, up 33.7% year on year.

Wendy told Red Star news that there are few in the international market that can completely replace China. Because every strong point product in China has basically achieved the acme. From the industrial chain to the finished products are very complete, each link is very mature.

"It is almost impossible for other countries to replace quickly. Foreign trade will certainly exist all the time. In the international environment, there may be some factors that affect whether we do more or less, make money or not. " Wendy said that the current situation in the industry is largely caused by the epidemic, but how long this situation can last is not known.

Another industry insiders told the media that the current market is booming, which is estimated to last for two or three years. The textile printing and dyeing industry is a labor-intensive industry, which is very sensitive to human costs, prices and other factors. Once the foreign epidemic situation is controlled and the production capacity is gradually restored, these backflow orders are likely to be transferred out again.