Less is 300% More - China's Supply Chain Impact

PTL Group PTL Group 2021-09-17

The Chinese New Year's holiday that was just celebrated, and the days around it are an annual wake-up call. They are a reminder of the complexity and the thorough handling that are involved in Chinese logistics. This year it's very much probable that you had to face with additional challenges posed by the Covid-19 pandemic.

It's true that the severe shortage of containers felt prior to the holiday has somewhat eased by now, but you don't need to be a financial expert to understand supply <> demand dynamics.

When the supply of containers is low, prices skyrocket. Hence, the tremendous bounce in prices that is evident in some shipping destinations is of no surprise (see the chart above). To make it more concrete, if you will, CNBC reported in late January that compared with last March's low prices, freight rates from China to the US and Europe have surged 300%.

China’s impact on the world’s supply chain

Due to China's undisputed role in the world's supply chain, any issue happening in China is about to create a ripple effect that touches anyone who is dependent on China.

So how do China's foothold in the e-commerce market, local laws, new agreements and the pandemic influence your market?

If you want to know more, make sure to join us on March 4th, for an exclusive discussion with Simon de Raddt from HyperSKU.

Simon de Raadt is the Vice President of Business Development Europe at HyperSKU. Having lived in China since 2011, he is an experienced executive in cross-border trade and eCommerce logistics.

HyperSKU founded in 2018 is empowering global online sellers with their sourcing and shipping from China.

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