At about 19:00 on September 15th, Beijing time, the exchange rate of the offshore RMB against the US dollar was 7.0050 yuan, which fell below the "7 mark", and the lowest price was 7.0183 yuan. After 19:00, the exchange rate of the offshore RMB against the US dollar "jumped left and right" around 7. In the month since August 15, the exchange rate of the offshore RMB against the US dollar has fallen by more than 2,600 basis points, or more than 3.88%. This is the second time that the offshore RMB exchange rate against the U.S. dollar has "broken 7" again after a two-year interval since it "broken 7" in 2020.

The exchange rate depreciation has advantages and disadvantages. On the one hand, a moderate depreciation is conducive to enhancing the competitiveness and price advantage of export trade, and promoting the recovery of the real economy. The breaking of RMB 7 is still beneficial for domestic cross-border sellers. It is possible to withdraw all the funds in the platform store in time when the US dollar exchange rate is high, which is equivalent to increasing some profits in disguise.

On the other hand, the depreciation of the exchange rate is very unfavorable for importing enterprises, which directly increases the import cost. But the devaluation is only reflected in the use of RMB to buy dollars. Import costs do increase when U.S. dollars are used for import settlement. If the import settlement is in Euro, Japanese Yen and British Pound, the cost is actually decreasing recently, because the RMB is actually appreciating against these currencies. Because the depreciation of the renminbi is the smallest decline for other foreign currencies.

Unhappy with Amazon's low wages, UK warehouse workers plan mass strike

On September 15, the British union GMB announced that hundreds of workers at the Amazon warehouse in the central British city of Coventry were voting on strike action because of dissatisfaction with Amazon's 35p an hour wage. This is the first official strike vote Amazon has faced in the UK.

Workers across the UK have staged informal protests against Amazon's proposed 3 per cent pay rise. Of the 300 GMB union members who voted in a consultative vote earlier this month, 97% said they were prepared to strike. If the vote is successful and the formal strike is successful, it will undoubtedly make things worse for sellers in the UK, and the peak season sales plan in the second half of this year will be seriously affected.

Port of Liverpool workers to strike from September 19 to October 3

More than 560 dockworkers at the Port of Liverpool, one of the UK's largest container terminals, have announced they will go on strike from September 19 to October 3 over wages, the Unite union said on Friday, sending inflation soaring this summer The resulting labor disputes further intensified.

US railroad strike 'a false alarm'

Meanwhile, on the morning of September 15, local time, Amtrak and three unions representing tens of thousands of workers reached a tentative agreement that will be submitted to union members for a vote, during which they will not strike. That averted a strike by America's largest railroad workers. This is good news for logistics providers and sellers who are approaching the peak of the peak season. In the event of a strike, the shutdown of the national rail system would have catastrophic effects.

Container freight rates on the US-Western route plummet by nearly 60%

Freight rates from China/East Asia to the US West Coast were $4,787/40-foot container (FEU), down about 60% from January, and rates from China/East Asia to North Europe were $9,128/FEU, down 42% from January.

From a global perspective, as of September 7, the global average freight price was US$5,286/FEU, down about 45% from January. From the historical trend, the price trend this year and the same period last year intersected, that is, this year showed a downward trend. The ocean freight rate is lower than the same period in 2021. However, it needs to be explained that the current freight rate is still much higher than the average price of $1000-1500/FEU before the epidemic.

In the peak season this year, with inflation in various countries, sellers should keep abreast of relevant information and make plans for delayed warehousing of goods.