How Does The Epidemic Affect Foreign Trade Enterprises

COVID-19 and Omicron is still spreading all over the world, In the short term, the risks and challenges faced by China's foreign trade development are hitherto unknown. How should Lintel deal with this situation?

Now we met below problems:

1. order decrease.

Due to the impact of the epidemic, foreign trade enterprises are generally faced with problems such as cancellation or extension of existing orders and difficulties in signing new orders, among which small and medium-sized foreign trade enterprises are more affected.

2. Blocked supply chain

Our main material suppliers are located in Shanghai, Suzhou, and Zhejiang, the epidemic is also in a tense in these cities, so our material supplying is also delayed, and can’t be promised like normal. This has a bad influence on our production.

3. Increased logistics costs

Our nearest port for shipping is in Shanghai and Ningbo. With over one-month lockdown for Shanghai port, all logistics pressure are generated to Ningbo port. It brings with a series of problems: warehouse explosion, higher inland freight cost, and longer delivery time. Many customers can’t bear the high cost, so they have to quit the order and wait for shipping for a longer time.

4. Capital chain and cash flow pressure

Due to the impact of the epidemic, China's foreign trade enterprises are also faced with problems such as large amount of funds occupied by inventory, tight supply of raw materials, rigid expenditure on water, electricity, rent and labor, which have increased the capital chain pressure and cash flow burden of foreign trade enterprises.

Apart from the problem we met, Lintel’s current situation:

1-Normally production: All of our workers and machines are working like normal, to ensure the delivery for previous orders. Now our tube frame, SEG lightbox, and roll up stand are all in the high demand.

2-Shipping: We have colleagues who are responsible for finding the most cost-effective logistics for our clients.

3-Warehouse: If our client cant pay the high inland freight, we can keep their goods in our warehouse and wait for shipping.

All in all, in this special peorid, Lintel is still in the leading team to manufacture kinds of banner stands, like pop up stands, tube frame, SEG lightbox, and roll up stand. And the most important is to keep safe and healthy.

Let’s go through this bad time ASAP.