From November 2016 in China, price for accessories keep on going high month by month, we was informed that fluorescent and reflective fabric cost increased. Freight charge in China also increased. Even more for carton packing charge is increased more than 50% compare to the one in October. For high visibility reflective vest, zipper, Velcro closure are all increased.
In this case, all manufacturers face a big problem for the cost. According to the experience of the past, labor cost in China will increase more than 20% per year after CNY holiday, also fluorescent and reflective fabric cost will increase again.
Some of clients will pointed out exchange rate for US dollars and RMB raised lot compare to same time in 2015. And ask to reduce price list. Everyone face a price problem for all the products they produced and purchased.
Coming to December, most of the US clients and European clients will go into Christmas and New Year holiday. For international business goes down in this month, but ocean shipment is very busy, all the port is crowded with containers waiting to be loaded on the board. Every year before CNY holiday, for FOB terms it is hard to get containers released, sometimes, some of the containers will be pulled off by shipping company who want to get much more profit to load the one which is CNF, so most of the clients will order goods in October.
In past week, most of the high visibility safety vest purchased in October is finished for delivery, we loaded 5 containers for safety vest, but today, we was informed 2 containers was pulled off.
In the greeting seasons, wish everyone Happy New Year 2017!