We believe all the businesses have been affected by the global COVID-19 pandemic to varying degrees. For exporting and importing market, first of all, we want to talk about the dramatic change in shipping market.
As a hose manufacturer and exporter, we have been experienced a sudden and dramatic increase in container freight rates. We believe that not only us, but also other exporters and importers suffered. One of our clients said that “Shipping has become a nightmare.”
Why does this situation happen? The reason is complicated, but in short explanation is due to the imbalance between supply and demand. Through economists’ analysis, the epidemic led to the global production capacity, the supply chain had been broken. Therefore the overseas markets’ consumption needs to rely on Chinese factories. Chinese exporting needs increase, caused a contradiction between supply and demand, the shipping rates dramatically raise.
Although the Water Transport Bureau of the Ministry of Transport has clarified that it will increase inspections on the implementation of freight rate filing., we also need to prepare for the shortage of container freight capacity. Sometimes we can not change the external macro environment, we have to accept and fit for it.
Besides Shipping rates affects, as a hose manufacturer and supplier, the raw material PVC for producing hoses rates have been increased a lot. Compared with about three month ago, the raw material price increased 18.78 %. In addition, the rise in coal prices has also made production very difficult.
We predict the PVC raw material price will continue goes up, so far we still not see the ceiling of PVC raw material price increases. We know that this is a tough time for both of us, if you need PVC hoses, we suggest you place your order as soon as possible in the earlier stage. We can see the people purchased PVC hoses from us in the last year won more profit space. We hope we can go through this tough time together. You and Orientflex, we can win a good future.