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Recently, there have been frequent attacks on cargo ships in the waters near the Red Sea, and a number of shipping companies have announced the suspension of the operation of the Red Sea route.
How serious is the Red Sea crisis?And how much impact will tensions in the Red Sea have on the global shipping industry and the world economy?What opportunities and challenges will textile and garment foreign trade enterprises encounter in this crisis?
The situation in the Red Sea is tense, and the world** is affected
Foreign trade between Europe and the United States is struggling
The safety of the cargo cannot be guaranteed, and some routes are suspended
A number of ships have been attacked or seized by militants, disrupting shipping and making cargo no longer secure.
In the context of this crisis,Suspension of sailings may become a major trend, shipping between Asia and Europe is expected.
CCTV news client.
It is reported that on December 15 and 16, the four shipping giants of the Mediterranean Shipping Company (MSC), Maersk (Maersk), CMA CGM (CMA CGM) and Hapag-Lloyd (Hapag-Lloyd) announced the suspension of Red Sea voyages, which means that four of the world's five largest shipping companies will avoid the Red Sea shipping lanesTogether, these four companies account for 53% of the global container shipping market
The cost of sea freight transportation has increased, and the chain cycle has been extended
During the Red Sea crisis, shipping companies had to choose to make a detour to the Cape of Good Hope in Africa to continue their operations. According to Egypt's Suez Canal Authority on the 17th local time, since November 19, 55 ships have chosen to circumnavigate the Cape of Good Hope at the southern tip of Africa.
According to Clarksons, about 10% of the world's maritime traffic is transported through the Suez Canal, if the Far East-Nordic route is changed from a detour via the Suez Canal to a detour via the Cape of Good HopeThe increase in distance is about 30%, which means that each voyage will increase the transit time by 10-14 days.
The detour means that the turnover efficiency of the ship decreases, the navigation cost increases, the number of shipping days increases, and the delivery time will be delayed accordingly, and the unacceptable delay may disrupt the chain.
The situation in the Red Sea has an impact on China's textile foreign trade
It is reported that the "Suez Canal - Red Sea", an international shipping artery, is one of the busiest waterways in the world, which connects Asia, Africa and Europe, connecting the Red Sea and the Mediterranean.
The Bab el-Mandeb Strait, located at the southern end of the Red Sea, connects the Red Sea to the Gulf of Aden, and is a strategic point for ships traveling between the Indian and Atlantic Oceans. About 12% of the world's cargo traffic passes through the Red Sea and the Suez Canal.
In addition to transport** and natural gas,A large part of the ** products here belong to clothingend products such as electronics.
CCTV news client.
It's winter and Christmas in the Northern HemisphereIt is the peak season for winter clothing to be exported to Europe and the United StatesAffected by shipping, garment foreign trade exports will face challenges.
Although the detour can solve the problem, but the time and cost will be affected, therefore, textile and garment foreign trade enterprises need to plan in advance, and when placing orders for overseas orders in the near future, they need to inquire in advance whether the route will be affected by the Red Sea conflict, and do not affect the arrival time of customers because of the Red Sea conflictIn order to avoid the risk of delivery caused by delayed delivery, and at the same time explain and communicate with customers in a timely manner
Conflicts are constantly changing, how can foreign trade enterprises deal with it?
The layout of "RCEP" countries may be the way to solve it
Of course, the impact of a conflict in the Red Sea is variable, and we need to adapt dynamically.
Turning to RCEP countries is a game-breaker!
RCEP member countries cover 15 countries including East Asia, Southeast Asia and Oceania, with a population of about one-third of the world and a total GDP of about 30% of the world. After the implementation of the "RCEP" agreement, more than 90% of the goods in the region** will eventually achieve zero tariffs, and the cost will be greatly reduced.
Enter the "RCEP" and seize emerging markets
How to choose a foothold for textile and clothing
Of course, the impact of a conflict in the Red Sea is variable, and we need to adapt dynamically. Especially since the beginning of this year, affected by the political changes in Europe and the Middle East and the restrictions of the United States, the growth point of China's import and export has shifted to RCEP and the Belt and Road countries.
Currently,With China as the center, RCEP member countries have formed a regional industrial cooperation model with obvious advantages。From the supply side, China, ASEAN, South Korea, Japan and other countries and regions are the world's important textile and garment manufacturing, R&D and design centers, accounting for half of the global textile and garment exports.
From the demand side, Japan, South Korea, Australia and other important traditional textile and garment import markets in the world, China's large consumer market import demand continues to grow, ASEAN as a rapidly developing garment manufacturing base, the import demand for textile intermediate products is also extremely huge.
RCEP expands the scope of tariff concessions in the original free trade agreement, which is conducive to expanding the import and export business to the relevant market, thusLet China's textile industry in the current traditional market instability in the context of the increase in the times, by opening up emerging markets to keep pace with the times out of the "dual circulation" growth path of China's textile industry.
Indonesia, Vietnam, Japan textile and garment markets need to be developed urgently
Vietnam
Except"In addition to the dual status of "member of the Belt and Road" and "RCEP member", Vietnam has also reached a free agreement with the European Union and other countries, and has so far negotiated 16 free agreements (FTAs), highlighting its advantages. Industries such as textiles such as garments and footwear will be the biggest beneficiaries.
Taking Vietnam's second largest export of ready-made garments as an example, after the CPTPP comes into effect, nearly 43% of Vietnamese ready-made garment products exported to Canada will be tariff-free immediately, and fully duty-free after 4 years of effectiveness. However, most of Vietnam's textile and garment manufacturers are processors, and 80% of their raw materials are imported from China and other countries.
For more market details, click below
Textile [know] global |Vietnam Chapter (Part I): From "Cochin" to "Vietnam", explore the charm of Vietnam's textile and garment market.
Textile [know] global |Vietnam (China): Under the continuous deepening of Sino-Vietnamese relations, where are textile and garment enterprises heading?
Indonesia
With the dual status of "new member of RCEP", Indonesia has added zero-tariff treatment for more than 700 tariff products on the basis of China-ASEAN Free Trade Area, including some clothing, shoes, bags, etc.
Although Indonesia is also an exporter, it is not self-sufficient and is still highly dependent on Chinese imports. Local Indonesian garment manufacturerFabrics are still sourced from China, as are raw materials such as yarn and grey fabric
For more market details, click below
Field Visit丨Analysis of popular products in Indonesia!In-depth decryption of Indonesia's largest textile and apparel market.
Japan
China is by far the largest garment exporter to Japan, and Japan's textile and apparel production is highly dependent on overseas imports. It is reported that from January to September 2023, Japan's clothing imports increased by 4 percent year-on-year08% to 166$600 million.
With the entry into force of the RCEP agreement, Japan has 992% of textile and garment products will eventually achieve zero tariff. Except for a small number (masks, duvets, cushions, etc.) that will not be reduced, most of the tariffs on clothing products exported to Japan (knitwear, men's and women's tops, pants, suits, T-shirts, socks, dresses, etc.) will be reduced to zero tariffs within 15 years.
The most direct and fastest way to go overseas and quickly develop the RCEP textile and garment market is to participate in the textile and garment professional exhibition.
We highlight the following for you:
AFF &Intex International Textile Exhibition
aff&intex is a global textile exhibition that includes apparel and accessories, home textiles and accessories, bags and footwear series brand exhibitions.
In 2022, Intex and AFF officially reached a strategic cooperation to join forces to expand the resources of first-class merchants, brands and buyers related to the textile industry more professionally, actively and efficiently, promote business cooperation and technological innovation in the industry, be the promoter and witness of the development of Chinese textile brands and markets, and serve more than 5,000 Chinese enterprises to seize the global textile market every year.
Global exhibition plans for 2024