Shipping costs are about to drop! Losses reversed in half a year

Data reports show that ports across the United States handled a total of 1.92 million inbound containers in December last year. Measured in volume units, the overall cargo volume fell 1.3% from November of childhood, and at the same time plummeted 19.3% from December 2021, and was only 1.3% higher than December 2019. It can be said that the surge in port cargo volume caused by the epidemic and the congestion that could not be handled have completely ended.

And this situation is expected to continue this year, because the United States experienced long-term port congestion and overcrowding in 2020 and 2021, so many measures were taken to expand and increase processing capacity. Now that cargo volume has returned to pre-epidemic levels, port processing capacity is still very high, so some processing facilities in ports across the United States will be idle for a period of time.

The same thing will happen in the shipping industry. In 2023, many new freight ships ordered after the epidemic will be delivered one after another. Global shipping capacity will inevitably go up. With high handling capacity and shipping capacity, shipping prices will inevitably continue to fall, even cheaper than before the epidemic. Next year, the cost of shipping for our cross-border sellers will be significantly reduced.

With the double benefits of shipments and sales at the end of the year, many big sellers took advantage of the second half of last year to reverse the situation of the whole year.

Last week, the well-known retailer Huakai Yibai released its 2022 financial forecast, showing that the company expects to turn losses into profits in the 2022 annual report, with net profit attributable to shareholders of listed companies of approximately 230-250 million yuan, and net profit increasing by 339.92% to 374.25% year-on-year.

Yibai Network, a holding subsidiary, rebounded in the second half of this year. With the help of factors such as a sharp drop in freight rates, depreciation of the RMB exchange rate, gradual inventory clearance, and a significant improvement in the industry's competitive landscape, it reversed the loss expectations at the beginning of the year. At the same time, Yibai Network's sales showed good growth in the second half of 2022, and the company's profit margin also increased significantly due to exchange rate issues. In the 2022 annual report, Yibai Network expects to achieve operating income of 4.3 billion yuan!

Yibai Network's business covers third-party cross-border e-commerce platforms such as Amazon, eBay, and AliExpress. Its main products include automobile and motorcycle accessories, industrial and commercial supplies, home gardening, health and beauty, outdoor sports and other categories.

At the same time, Yibai Network also announced that the actual controller Zhou Xinhua had previously borrowed more than 100 million yuan to invest in Yibai Network and subscribe to the company's restructuring supporting financing shares. Therefore, Zhou Xinhua intends to reduce his holdings and cash out to repay the above loans. The loan will expire in July 2023, and the scale of the reduction is expected to not exceed 1.63% of the company's total share capital.

I checked and found that since Yibai Network went public in 2018, its performance has been unsatisfactory and it has suffered losses for several consecutive years. In order to improve its operating conditions, it underwent a restructuring in 2020, and the actual controller took on a large debt for this. The current successful counterattack is indeed a feat of breaking through and building up! After experiencing the decline of Amazon last year, many sellers are in the same low period as Yibai Network. There are many opportunities this year, and everyone must seize them and counterattack in one fell swoop!