Import costs in China rise to record highs
China’s industrial engine has been making a comeback since the outbreak of Covid-19. Still, there are certain factors disrupting the economic recovery of the country. Due to the global shortage of shipping containers, import costs for China are currently rising to record highs.
It is important for Western companies and importers to take these price developments into account. In this blog, you will therefore find more information about the emergence and the consequences of these obstacles.
High transport costs arise in China
Last November, Chinese exports increased by 21% compared to last year. Despite this, transport costs for Chinese shipments are rising to new heights. Various factors play an important role in this.
Consider, for example, the way China regulates their supply of containers, where three sea containers are exported and only one container enters the country. Grounding passenger planes that also carry cargo has increased the demand for ocean freight even more.
This combined with delays of containers returning to China (due to the coronavirus epidemic) creates a serious shortage. The logical consequence is that Chinese export flows also seem to be slowing down considerably.
Goods are piling up at the manufacturers with all its consequences. It is therefore more important than ever for Western companies and importers to deal with this carefully.
High transport costs of goods from China
Experts do not expect price reductions until vaccines for the coronavirus are available worldwide. This will also change the dynamics of the shipping market.
Until then, it is especially important for Western importers to factor in the high transport costs for goods from China. Coolen China wants to emphasize that every sea container with defective and / or damaged goods will be a very expensive surprise.
It is therefore wise to keep these kinds of unnecessary risks to a minimum. Do you want to ensure the quality of your import products? A great solution would be to call in the help of an external party. This way, you immediately have professional purchasing guidance, and you will also receive reliable advice regarding transport.
Quality control to minimize risks
The high import costs in China also increase the risks for Western importers and entrepreneurs. Due to the shortage of shipping containers, Chinese suppliers are stacking one order on top of another, putting goods at risk or even damage them.
However, if you choose to perform quality checks at the manufacturer, you can usually rule out these risks. Would you like to know more about the benefits of quality control? Please feel free to contact us!