Today, the overseas epidemic is still spreading. Italy, Malaysia, Australia, the Philippines, Singapore and other countries have begun to announce “country closures” and “city closures” to block the spread of the epidemic. These policies also directly led to overseas customers canceling or postponing orders, and the textile circle cried out: “The world is going to change! Orders for millions of meters and thousands of tons have been cancelled!”
According to recent reports from Vietnamese media, not only China, but some garment companies in Vietnam have also received chargeback notices from European and American countries. Taking TNG, a clothing manufacturer in Taiyuan Province, Vietnam, as an example, according to the The company revealed that a French company has canceled a clothing order with the company. In addition, its American buyers also informed that their orders would be canceled or postponed. According to TNG statistics, the company’s containers with a total value of up to 20 million US dollars that were originally supposed to be shipped to Europe and the United States are still stuck in Vietnam and cannot be exported. This series of order cancellations and postponements has brought huge panic to the textile market!
For rush orders that have not been canceled, there is no work to do for those that have been canceled!
Since orders are canceled halfway now, it is no longer rare. Everyone is worried and afraid of waking up. The order was cancelled. In order to avoid this situation, traders are rushing to rush the goods and ship the goods as early as possible!
“Our customer is from Turkey. Although our orders have not been canceled for the time being, we are afraid that the epidemic will become more serious. If the customer If the order is canceled midway, then this part of the distribution can only be regarded as inventory, waiting for the opportunity to sell it in the future.” A trader revealed.
“Currently, gray fabric orders will not be placed if the L/C is not available; in the case of TT, even if the deposit arrives, the goods must be controlled. High-quality customers can continue to place orders, while ordinary small customers will be postponed. Special treatment can only be given in special times.” A trader said helplessly.
At the same time, the editor also learned that some small and medium-sized trading companies only cooperate with 1-2 customers. At present, customers have either canceled their orders or stopped placing orders. They are faced with a situation where there is nothing to do. “We are now We just send samples every day, but there is nothing to do. Foreign countries have pressed the pause button. Our company’s business has been greatly affected, and we don’t know what to do next.” said a salesperson of the company. At the same time, the epidemic has also made textile companies nervous. Relying only on 1-2 customers is no longer a long-term solution. They need to put their eggs in different baskets and expand more high-quality customers.
Resolved through negotiation, order postponed
Some trading companies said that they should not receive notices of order cancellations for the time being. “We have negotiated again with European customers. The order will only be postponed and will not be cancelled. The extension is acceptable. If you cancel the order, you will have to pay the corresponding liquidated damages.”
“Our customers have been cooperating for many years, and the relationship has always been good. No one wants to spread the epidemic, and each other If we understand, we can get through the difficult times. Just like when there was an epidemic in China before, our customers also gave us an extension.” The trader revealed.
Although order postponement is more acceptable than direct cancellation or midway cancellation, many bosses have expressed concerns: “No one has said how long the order will be delayed. If the epidemic continues to be serious, the final result will be cancellation.”
Dock workers refuse to work, buyers do not come to pick up the goods, and there is a risk of goods being detained
In addition to order cancellations, foreign traders now also face a problem , that is, the goods have arrived at the port, but there is no one to unload or pick up the goods. It is reported that there is another bad news from the United States! Longshoremen at the Port of Oakland are refusing to work on the docks, saying the terminals do not have the equipment and facilities to sanitize employees. The move could disrupt normal operations at the port and further strain global supply chains amid the coronavirus outbreak.
The Port of Oakland accounts for 99% of all containerized cargo flowing through Northern California. Three-quarters of the port’s trade is with Asia. In the next few months, as people panic, more and more ports may face the risk of no one unloading or picking up cargo. And during this period of detention, problems may occur with the goods, causing losses. All these require foreign traders to conduct risk assessments in advance.
After the epidemic,�The demand for foreign trade still exists!
The outbreak of the epidemic on a global scale is undoubtedly a huge blow to the textile and apparel industry, but at the same time it also makes the world understand that in the globalization of trade Against the backdrop of the epidemic, no country can survive the epidemic alone.
At present, China has achieved positive results in fighting the epidemic, and has set an example for the world in epidemic prevention by sending doctors and experts as well as donating masks and protective clothing to countries with serious epidemics. Under the epidemic, our country’s responsible attitude towards people all over the world demonstrates the sense of responsibility and mission that a big country should have.
I believe that after the epidemic, the social and economic operations of various countries will gradually return to normal. Clothing demand will slowly return to normal, and the rapid recovery of China’s industrial chain, its tenacious ability to resist risks, and its complete industrial chain will attract overseas customers to place orders. By then, large-volume orders will be placed just around the corner. What textile companies have to do now is to stabilize their business and ensure sufficient cash flow during these days when orders are unsustainable. After this period, there is hope for a rainbow! </p
