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Power rationing and production shutdown triggered a decline in the production capacity of foreign trade factories

2021-10-15

Power rationing and production shutdown triggered a chain reaction of decline in foreign trade factory capacity, price cuts in shipping logistics, and price hikes by cross-border sellers

In the past two weeks, many provinces such as Guangdong and Zhejiang have implemented power curtailment policies. Guangdong Power Grid stated that it will implement the [on-two-stop-five" power plan from September 16th, and shift peak shifts from Sunday to Thursday; Zhejiang Shaoxing, Wenzhou and Other places have also begun to strictly control textile printing and dyeing, chemical fiber, plastic products and other manufacturing industries. Production capacity, a large number of factories are facing shutdowns and production cuts.

Factory goods can`t be delivered, which affects the stability of orders, reduces the volume of foreign trade exports, and also triggers a big plunge in shipping prices. ), but whether it is only a temporary phenomenon still needs to be observed.

The increase in stocking risks brought about by the decline in factory capacity has made many sellers determined to increase prices, and a wave of price increase notices issued by manufacturers will accelerate Amazon sellers` price increases across the board.

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