Not fully true on the payment. It depends on the terms of the sale. Most product is purchased FOB origin Port, which basically means that the manufacturer in China gets paid once it is loaded on a container and put on a ship. Since there is a shortage of containers in China, it still has the same effect.
Each consignee negotiates these with their consignors individually, so there’s a whole mix of times they get paid. The suppliers in China are DEFINITELY feeling the pain. Since COVID shut a lot of them down for awhile, not being able to get their goods into the US is just salt in the wound.
Source I work in customs and trade compliance for one of the top ten importers into the US.
I’m convinced there’s no coincidence between the various woes the Chinese economy is suffering now, but that’s more of a gut feeling given what I see. There’s nothing I can concretely point at that connects the two.
It would in the turn around of properties. Construction supplies have been sparse for over a year, now. If you can't rehab, remodel, construct, or de/re-construct so you can sell it, then it hurts the bottom line of the owner. New construction and remodels in Chynah are waaaayyyyy down.
Done plenty of Import from China via ships - at least 95% is FOB. It is the standard practice for anything that is LTL or FTL (less than container, or full container) size.
Not fully true on the payment. It depends on the terms of the sale. Most product is purchased FOB origin Port, which basically means that the manufacturer in China gets paid once it is loaded on a container and put on a ship. Since there is a shortage of containers in China, it still has the same effect.
The list of incoterms can be found here:
http://www.priorityexpress.ca/DATA/TEXTEDOC/List%20of%20Incoterms.pdf
Each consignee negotiates these with their consignors individually, so there’s a whole mix of times they get paid. The suppliers in China are DEFINITELY feeling the pain. Since COVID shut a lot of them down for awhile, not being able to get their goods into the US is just salt in the wound.
Source I work in customs and trade compliance for one of the top ten importers into the US.
Are we seeing some of the pain manifest in financial debacles like Evergrande, etc?
I’m convinced there’s no coincidence between the various woes the Chinese economy is suffering now, but that’s more of a gut feeling given what I see. There’s nothing I can concretely point at that connects the two.
Also they are having an energy crisis. No power in wide swaths of the country.
It would in the turn around of properties. Construction supplies have been sparse for over a year, now. If you can't rehab, remodel, construct, or de/re-construct so you can sell it, then it hurts the bottom line of the owner. New construction and remodels in Chynah are waaaayyyyy down.
got any extra containers in Ningbo?
Proof? FOB is only one kind of contract. There are many others. COD (Cash on Delivery) for instance. It depends.
It is a shit show today. 40 footers were $2100 a year ago. Just gave approval for a $25,000 container.
Done plenty of Import from China via ships - at least 95% is FOB. It is the standard practice for anything that is LTL or FTL (less than container, or full container) size.