Until recently, it was standard practice for major American retailers to pay the full cost of shipping goods from China to the United States, with the companies able to leverage long-standing relationships with global shipping firms to keep costs low, sources from exporters in eastern China’s Zhejiang province said. But that is now changing. Factories in Zhejiang supplying the US’ “dominant” hypermarket chains are now having to foot part – or, in some cases, all – of the cost of transporting goods to America, according to the sources.
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Stage Group, a leading garment maker from Zhejiang, has been paying the logistics costs on 60 per cent of its US-bound shipments since the end of May, a sales representative from the company said. Shipping costs are not the only area where China’s factories are being squeezed. Earlier this month, sources told the Post that US retailers were pushing their Chinese suppliers to shoulder up to 66 per cent of the costs of US tariffs, whereas previously those fees were paid by the American buyers.
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