Today one of my customer ask us “the shipment prices are really crazy, it is really too expensive, I don’t know whether I will order again the bed frame in 2021, what do you think about it? It will be better in 2022?”
We totally understand our customers feeling, honestly we also have the same situation. Not only sea freight keep raising, but also the material cost raise a lot.
Our factory was hesitate to order material, but our marketing dept did analyze and predict that the market trend will keep going up of all the cost, waiting will increase more cost for us only.
Absolutely, they are right. Blew is some data from the public, we can found that since June 2020, only the steel price has been increased more than 46%. And the steel price start to raise up again recently.
About the sea freight, from 2020 to Feb 2021 has grown over 300%, now even up more than 800%.
Multiple commentators thought the sea freight will come down during the summer holiday, it would peak in August or September and fall off in 4 quarter. But it seems the market did not go like this.
Due to the COVID, the Yantian port has strict controlled for the containers that make the shipment can not run smoothly. That leads to Shekou port and Guangzhou port come with great pressure. At this afternoon June 5, the Nansha port also have to lockdown. Which means the shipment will be more and more difficult in Guangdong for the coming day. This situation will necessarily radiate to other surrounding port. For that result, the sea freight will be going up and up.
These 2 years will give many industries a big reshuffle. It is a testing for the company leader courage and strategic deployment.
So we think if have demand, it is better to confirm earlier, since the peak season is coming, means market will be more crazy than before. If not so urgent, it can wait till 2022. But it is hard to say.
After all, it depends on the international market situation, and the relationship between countries. It is the key of world’s economy. All of them are out of our control.
Per the international situation at present, I think that the market trend in 2022 will keep stable like this year or raise more, but at least won't drop too much, it also should be not easy for all of us in next year, but we will try to overcome all the difficulties, and grow up with our customers together.
Hope this info is useful for you, if any support you need, I will be here all the time.