Manzhouli Port is closed, Sino-Russian border trade stalls
With the global supply chain affected by the epidemic this year, since the beginning of this year, ocean freight rates have continued to rise, and many foreign trade companies are facing the embarrassing situation of increasing orders but not being able to ship goods. Under this circumstance, many foreign trade companies and related supply chains have been forced to change their strategies and target the China-Europe freight trains.
Manzhouli is the largest land port in China. Timber imports rank first among all ports in the country , and it has an extremely important position in timber imports. According to statistics from Manzhouli Customs, since the opening of the border, 310 million tons of imported and exported materials have been evacuated through Manzhouli Port. The heavy container rate of the China-Europe train via Manzhouli Port is as high as 100%, and it is responsible for more than 65% of China-Russia trade by land transportation . It provides strong support for ensuring the stability and smooth flow of the international industrial chain supply chain and helping the domestic and international dual cycle.
Manzhouli Port is fully closed
On November 29, 60 positive samples were detected in the first round of large-scale nucleic acid detection in Manzhouli, Inner Mongolia. In order to curb the spread of the epidemic, the Manzhouli government of Inner Mongolia announced: Starting from November 27th, flights, trains, long-distance buses, taxis, and urban buses in Manzhouli will be completely suspended, and traffic control will be implemented at all entrances and exits in the city , and 24-hour duty will be implemented. All checkpoints and peripheral checkpoints are strictly investigated and strictly controlled for people and vehicles entering and leaving the city.
Sino-Russian border trade may stall
The leakage of houses has happened to rain overnight. Since the beginning of this year, the number of China-Europe freight trains has continued to increase, but the limited port operation capacity, coupled with the impact of border epidemic prevention and control and other factors, has caused a large amount of cargo to be backlogged at the port . With the increase in freight demand at the end of the year, port congestion has become more and more serious recently, and China's export capacity to Russia is gradually declining .
This has led to the phenomenon of vehicle detention on the Russian side at the Manzhouli port. Truck detention costs 500 euros a day, which indirectly leads to a sharp increase in port freight prices , and China-Russia trade is facing huge challenges. Now that the Manzhouli port is closed across the board due to the epidemic, it may directly lead to the stagnation of Sino-Russian border trade.
Increased export costs and risks
The Manzhouli port is an important hub connecting Sino-Russian trade, and the suspension of the entire border port has caused huge losses to timber exporters. The port was shut down due to the epidemic, so they had to start thinking about switching exports to other modes of cargo transportation , such as sea transportation.
Changing the existing logistics chain means paying a huge amount of cost, leading to increasing export costs and risks . In addition, changing the delivery terms stipulated in the contract requires additional legal consulting fees, which can be described as "difficult" for exporters.
Concluding remarks
Affected by Russia's timber export tightening policy, China's timber imports from Russia have been declining in recent years , and the country's total timber imports have dropped to 22.3% of the first seven months of this year. The prosperity of border trade has brought about an accelerated flow of people, and the development of border port work has a long way to go.
The closure of the Sino-Russian land port, in the short term, there is still a certain amount of domestic timber stocks, which will have little impact on the company ; in the long term, if the epidemic cannot be effectively controlled in the next two or three months, when work resumes and production resumes , The cost of wood may be pushed up again . At present, Sino-Russian bilateral trade is still facing greater uncertainty .
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