Under the continuous impact of the coronavirus, global enterprises are facing the problem of supply chain interruption, shortage of raw materials, soaring prices, shortage of manpower, production interruption, and delay in the delivery of goods.
First, the direct reason for the rise in raw material prices is the over-issue of currency and international transmission. Since the outbreak of the epidemic, major central banks around the world have launched currency releases. The Federal Reserve once released 6 trillion US dollars of currency. In response to the impact of the flooding of the US dollar, the central banks of other countries have also opened taking currency measure, development mode to stimulate its own economy and hedge against dollar risks.
Second, the short-term reason is the influx of speculative capital from other markets, which leads to an imbalance in the price mechanism, and the price of raw materials fluctuates greatly. Such funds are often short-term speculation. Investors bid up prices, in order to obtain high returns from the short-term sharp rise and fall of raw material market prices.So prices rising.
Finally, the rise in raw material prices is related to the imbalance between supply and demand at the industrial end. During the epidemic, our energy economy and industrial production almost shut down. At this time, all the material prices were very low. But in the post-epidemic era, the world economy and industrial are coming recovery, and with its sudden recovery and demands, there is a gap for raw material supply, can’t meet the explosive for such demands, that makes material price rising. On the other side, global shipping price is also the reason, facing the climate and coronavirus, strike...
Steel product:for sofa and chair frame or steel furniture.
Foam product: for cushion, sofa
For our most advantage export area: furniture, facing the price rising, and our exports have been severely hit. But there’s a sign of falling price, as the mature of supply and demand, everything will go well. We should keep hope. Therefore, the understanding of customers is our driving force. Thanks you for not giving up on us.
Ocean freight plays a major role in the trading industry. With the major increase of ocean rates over the few years, it has caused a major burden to importers and making business much more challenging ever.
Why is the shipping industry like this?
Fewer sailings
Since the Covid-19 pandemic, it has shaken the global trade. Countries in lock down, no demands were needed in the market causing shipping volumes to drop.
With the decreased demand in the market, shipping lines cut out many of their sailing lines and even sailing points, to reduce the overall costing of shipping.
As in the current time, countries reopening; slowing the demands in the market rising but then shipping lines still remained the same, then another problem occurs there is demand in the market but limited shipments avaliable.
Container shortage
With the distrupted flow of containers around the world, containers going out of the country but not coming back in a timely manner.
Many are in inland depots. Others are piled up in cargo ports, and the rest are onboard vessels, especially on transpacific lines.
Port Congestions
Reduction in workforce; lockdown of countries, which has caused delays in ports and terminal operations.
Added surcharges by shipping lines
Increased current charges and additional charges caused by covid, limited workforce; reduced shipping lines with added charges making ocean freight becoming much higher compared to before.
We have no MOQ for normal colors as long as they are in stock. If no stock,we require 100 pcs for normal plastic color and 200 pcs for customized plastic color. Small quantity for customized wooden furniture is accepted.
Generally speaking, it will take 20~35 working days after receiving your advance payment.
The specific delivery time depends on the items and the quantity of your order.
We accept T/T bank transfer, L/C at sight, Western Union, and Payment via Alibaba.
Normally, 30% of the total amount paid prior as deposit, and 70% balance should be paid before loading.
If your order reaches 1*40HQ, we will do the FOB terms, and you just need to give us your forwarder's details. Then we can help to handle with everything here in China.
If order is less than 1 full container, we can help you to do the LCL shipping. Price will be EXW Factory price only. The FOB Fee will be on customers .
OEM is available, sample can be provided also. But we need to charge sample fee and will return the fee when buyers place bulk order. Please feel free to contact us for further information.
