Foreign media are reporting that global demand for Chinese goods has been so strong recently that a shortage of containers and soaring transportation costs could put a damper on China’s export growth in the coming months.
Since last July, China’s exports have performed exceptionally well, mainly because of strong sales of epidemic-related goods such as masks and home office equipment. Import growth has not increased at the same rate, resulting in a shortage of containers returning to China for reloading and export.
This phenomenon has pushed up transportation costs and raised the price of Chinese goods in overseas markets, which could be detrimental to export demand, said Serena Zhou, a fixed-income analyst at Mizuho Financial Group in Hong Kong. The shortage of containers may have affected export performance in December last year. The situation may further worsen as exporters consider stepping up shipments before the Lunar New Year in early February.
Recent Comments