South China ports are congested, and exports of home appliances are hampered during the peak season

Affected by the epidemic in South China, the rapid growth of home appliance exports has encountered resistance.

Statistics from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products show that from January to April 2021, China exported $37.62 billion worth of home appliances, a year-on-year increase of 55.5%. Among them, exports in April were $10.14 billion, and the monthly export value of home appliances exceeded $10 billion for the first time, and this trend will continue. Therefore, some people estimate that China's home appliance exports in 2021 will exceed $100 billion.

However, the epidemic in South China has brought uncertainty to the export growth of China's home appliances.

Since May, some ports in Guangdong have introduced control measures. The official WeChat account of Yantian Port, "Easy Logistics Yantian", issued a notice that from May 31, only heavy containers with an ETA of -3 days (that is, within three days before the estimated arrival date of the ship) will be accepted, and the "no appointment, no port entry" system will be strictly implemented, with a daily limit of 5,000 containers. On June 6, the official WeChat account of Shekou Port also issued a new notice on the arrangement of export heavy containers entering the gate, only accepting heavy containers with an ETA of -3 days.

Shipments from ports in South China are restricted and exports are blocked, resulting in a large backlog of goods. Companies have no choice but to transfer goods to other ports for export, which may lead to congestion at other ports as well.

Among exported home appliances, cooling and refrigeration products, which are in the peak season, were particularly affected.

As summer approaches, the demand for cooling products in overseas markets has increased. Recently, the U.S. Weather Bureau issued a high temperature warning, and many states in the western United States will face record high temperatures. In the coming week, the high temperature will spread to more areas in the western United States. In Google Trends, searching for cooling products, it is found that the heat in many states in the western United States is as high as 100%.

This should have been the peak export season for air conditioners, refrigerators, electric fans and other products. However, some companies are now in a dilemma of factory shutdowns, backlogs of goods, and inability to ship goods due to the epidemic. Some companies have had to give up some low-profit orders.

As the epidemic in Guangdong is gradually under control, some ports have gradually resumed operations and opened berths. The official WeChat account of Yantian Port announced that from June 10, it will begin to accept export heavy containers with ETA-7 days (i.e. within seven days before the estimated arrival date of the ship). However, industry insiders believe that it will take some time to observe whether the capacity problem can be alleviated.

South China Port

Home Appliance Export

Yantian Port