navitor.com 14 The Strengthening of the U.S. Dollar and Weakening of Global Currencies The U.S. dollar continues to rise in value against other major currencies, after the U.S. central bank increased interest rates again earlier this month. USD soared against major currencies from Euro to the Chinese RMB. An index of the dollar versus other major currencies is trading on a 20-year high. A stronger dollar will make purchases overseas cheaper. Exchange Rate for 1 USD to RMB $1=7.2287 Chinese yuan renminbi Golden Week Holiday Prepare for the long holiday in China from October 1 through October 7. • There will be slowdown for production and outbound/inbound traffic will be impacted. Production will mostly stop, which traditionally leads steamship lines to ration services and set up blank sailings to adapt the capacity to the lesser volumes. • Prepare for increased additional shipments AFTER the public holidays as folks ramp up shipping and production again. Zero-COVID Policy in China China’s COVID worries to take shine off Golden Week holiday. • Travel during this yearly holiday when folks go back home for extended visits is set to hit its lowest in years as COVID-19 concerns spur calls for people to avoid travel. • Chinese President Xi Jinping is set to begin a third five-year term in October, breaking the precedent of stepping down after two terms. • Lockdowns are expected to continue at least through the meeting of the 20th National Chinese Communist Party Congress. INTERNATIONAL (IMPORTS) MARKET October 2022 The U.S. dollar is showing strength against RMB and other currencies – this will help lower the material cost of imports. Freight is showing signs of declining container costs as well. U.S. Customs is increasing its audits and inspections.
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