Yiwu Foreign Trade Companies’ Orders Plummeted

Since last year, global container freight rates have continued to rise, and the quotations in the container market on some routes have skyrocketed to more than ten times. Yiwu, Zhejiang, is an important center of China’s export of foreign trade commodities. The drastic changes in container freight rates also have a huge impact on Yiwu’s export of commodities. Some commodities cannot bear the excessively high freight rates, and many overseas buyers have suspended their orders, and have postponed orders for some low-value commodities or refused to receive the goods. In addition, due to the impact of the epidemic, many international merchants are inconvenient to travel and the passenger flow in the trade city is not as good as before, resulting in a significant decline in the order volume of many stores this year. According to expert analysis, there is still a large backlog of orders in China, and the loading rate of container ships is still at a high level. Therefore, the freight rate is unlikely to fluctuate sharply in the short term. However, on the other hand, the margin of supply and demand of containers has eased, and in the future, we need to be alert to the risk of freight rate diving caused by the decline in loading rate.