As the holiday season approaches, many American retailers and consumers are relying on imports from China to stock up on Christmas decorations, lights, gifts, and other festive items. However, importing from China this year has become more challenging and costly due to the reduced number of flights and the increased demand for air cargo.
According to the U.S. Census Bureau, the U.S. imported $44.8 billion worth of goods from China in October 2023, up 12.3% from the same month last year. Among the top categories of imports were electrical machinery, toys, games, and sports equipment, which are popular items for the holiday season. However, the supply of these goods is not keeping up with the demand, as many importers are facing delays and higher prices for air freight.
According to Freightos, an online marketplace for freight services, the average price for air cargo from China to the U.S. was $9.8 per kilogram in October 2023, up 48% from the same month last year. The main reason for the price hike is the shortage of flights between the two countries, as many airlines have reduced their passenger and cargo operations due to the COVID-19 pandemic and travel restrictions. As a result, the available space for air cargo is limited and the competition is fierce.
To cope with the situation, some importers have switched to sea or rail transportation, which are cheaper but slower alternatives. Others have tried to source their products from other countries, such as Vietnam, India, or Mexico, which have lower labor costs and less trade tensions with the U.S. However, these options also have their drawbacks, such as longer transit times, lower quality, or higher tariffs.
Despite the challenges, many importers are optimistic that they can meet the holiday demand and satisfy their customers. They have planned ahead, ordered early, and built up their inventories to avoid shortages and price fluctuations. They have also passed on some of the increased costs to their customers, who are willing to pay more for their desired products.
As the holiday season draws near, many Americans are looking forward to celebrating Thanksgiving and Christmas with their families and friends. They are also eager to shop for their favorite items, whether online or in-store, and enjoy the festive atmosphere. Importing from China may be more difficult and expensive this year, but it is still a vital source of supply for the U.S. market.
Post time: Nov-17-2023