What is the impact of rising freight costs on the textile industry?
The price of fabric raw materials has been relatively stable recently. Some companies may extend the procurement cycle to reduce additional transportation costs. This is a price increase by customers. But in general, shipping costs have still increased, and it is very difficult for fabric companies to spread the increased costs to products. Since it is difficult to raise prices for natural cotton and fabrics, the profit margins of fabric companies have shrunk again.
For raw material traders
Since it is in the traditional peak season of Gold, Nine and Silver, relatively speaking, Market purchases have improved recently. Due to the implementation of new regulations, it is reported that some merchants will help customers with logistics and transportation, and the price given to customers is the delivery price. Now that transportation costs are increasing, traders are bound to take advantage of price increases to reduce their own costs.
In short, fabric companies produce ” With the implementation of the new regulations, importers in particular have been faced with great challenges. For example, the inland transportation costs of imported spinning yarns, terminal loading and unloading costs, and manual processing costs will all increase by about 30%. The operation time will be increased by 2 days. This sudden change has greatly increased the operational difficulty for all aspects of the fabric industry as well as logistics and transportation.
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