Wednesday, September 22, 2021
Martin Hennecke

Exporters fear costs impact on Xmas orders
<p>Exporters in Hong Kong are worried that rising transportation costs may dim overseas Christmas orders, according to a Trade Development Council survey.</p><p>Only 20.2 percent of Hong Kong businesses polled in the third-quarter survey anticipated an increase in Christmas sales this year, compared with 38.7 percent who foresaw no change and 41.1 percent who predicted a decline.</p><p>The council also announced yesterday that its export index for the third quarter fell 9.7 points to 39, after rising for five consecutive quarters.</p><p>The survey is conducted every quarter, covering 500 local exporters from six major industries - machinery, electronics, jewelry, watches and clocks, toys and clothing - to gauge confidence in near-term export prospects.</p><p>&quot;The key issues seen as affecting Hong Kong&#39;s export performance in the coming six months continued to be the pandemic and softening global demand,&quot; said director of research Nicholas Kwan. Regarding pandemic-induced problems, 53.6 percent are worried about increased transport costs while 59.5 percent have been faced with reduced order sizes and 28 percent have been affected by order cancellations.</p><p>An increased number of companies also reported difficulties in sourcing raw materials, parts and components, which suggests that supply chains may have been affected, Kwan said.</p><p>That came as Deputy Commerce Minister Ren Hongbin said China&#39;s small-to-medium enterprises are facing pressure from high shipping fees and expensive material costs, and Beijing will launch supportive policies.</p>

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