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US-China Trade War Smog -- Logistics Industry Debts Surge

10/4/2019

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The US-China trade war has an enormous impact not only on manufacturers, but also severely crash on Hong Kong and China logistics companies. Cases and debts from logistics companies received by RMS have more than doubled in the last two months. 
To circumvent the tariffs so as to slash the impact, manufacturers have shipped goods in advance to their US customers. However, customers have not picked up in time and the cargo sitting at the port has accrued storage fees and customs charges. Manufacturers could not pay incremental logistic costs because they have not received payments from customer yet. These over-dues have reduced cash flow of logistics companies and could lead to business disruption. 

Our data and analysis has shown an increasing trend in accounts receivable of Hong Kong and China logistics companies over the past six months. As the trade war keeps on, not only manufacturers and logistics companies, but also companies of the upstream and downstream supply chain need to be aware of managing accounts receivable and maintaining a healthy cash flow. It is important to expedite receivables collections cycle to avoid any financial risk.
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As a recognized global leader of debt collection, RMS has collection network of offices and alliances around the globe in over 190 countries. Our expertise helps to collect your past-due accounts sooner. From our past experience, the earlier you start debt collection, the better chance to succeed.
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