Orders have shrunk by nearly 40%. Is the cross-border "winter" coming?

Orders have shrunk by nearly 40%. Is the cross-border "winter" coming?

Since the beginning of the year, the topic of "declining order volume" has been hot in the cross-border circle. Order volume has been cut in half, and the order volume has dropped by nearly 70%. Around Easter, some sellers' order volume even hit the lowest record of the year. This is not only true online, but also offline. A large number of retailers are complaining that the goods are not selling well. The impact of declining sellers' order volume on logistics is self-evident.

 

A few days ago, CCTV News exposed this year's export situation, and various domestic export orders were reduced by 30%-40%.

The slowdown in global trade growth and shrinking demand have significantly increased downward pressure on cross-border industries. Li Xingqian from the Ministry of Commerce said that the main contradiction in China's foreign trade has changed from last year's supply chain obstruction and insufficient performance capacity to the current weakening of external demand and declining orders.

 

There are two main reasons for the decline in export orders : a decrease in overseas demand , as foreigners no longer consume; and a loss of orders , as orders have been snatched away . The United States, as the world's largest consumer market , is particularly affected, with demand shrinking severely .

 

Data from the Japan Maritime Center showed that in January this year, the number of containers exported by 18 Asian economies to the United States fell by 20.1%. Specifically, China's exports to the United States plummeted by 25.4% to 822,047 TEUs ; Taiwan fell by 28.5% to 48,124 TEUs ; exports from member countries of the Association of Southeast Asian Nations also fell by 11.8% to 342,926 TEUs ; and Japan fell by 19.9% ​​to 43,829 TEUs.

 

The slowdown in market demand, weakening consumer demand and order losses have already spread to the logistics industry .

 

Logistics giants have begun to collectively lay off a large number of employees, with the total number even approaching 10,000. The companies that are laying off employees can be mainly divided into two types: one is that logistics companies hope to reduce costs and increase efficiency through large-scale layoffs due to sluggish demand in overseas markets and poor performance reports; the other is that investors are eager to see investment returns and put pressure on logistics companies to push them to lay off employees.

 

The arrival of the cold winter has brought serious challenges to the cross-border logistics industry, with fewer orders, low profits, falling wages, and crazy internal competition . In order to survive this cold winter, logistics practitioners have established the [Freight Forwarding Circle] community to form their own circle of logistics people, share transaction experiences, exchange customer resources, expand social circles in the logistics industry, make more friends in the circle, help each other, and develop together.

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