(Yicai Global) Aug. 23 -- Christmas decorations and supplies may not make it in time for the festive season this year as Yiwu, known as the world’s go-to city for small commodities, is facing difficulties shipping out the goods.

Christmas tree maker Xintean exports about CNY150 million (USD23 million) worth annually, but this year its artificial trees are languishing in a 10,000 square meter warehouse at a cost of CNY2 million (USD308,000). At least 30 percent of Dongyang Weijiule Arts & Crafts’ chip-equipped Santa Claus goods are also in storage, and a question mark hangs over their timely shipment, according to Sales Manager Qiu Xuemei.

Xintean and Weijiule are two of the many small commodity producers affected by a constriction in international logistics capacity in the eastern Chinese city of Yiwu, which accounts for two-thirds of the world’s Christmas-themed supplies.

Tight shipping capacity has driven up transport costs, too. The price of hiring a container headed to the eastern United States from Asia, for example, is more than USD20,000, a five-fold increase on a year ago, according to the Freightos Baltic Index on Aug. 20.

Operations at Zhoushan port in Ningbo, another city in Zhejiang province, have been suspended due to a domestic Covid-19 case reported on Aug. 11, further restricting limited shipping capacity.

August is the peak season for exporting Christmas supplies, Zhu Zhijuan, head of Yiwu Xintean Arts & Crafts, told Yicai Global. But even though customers placed orders much earlier than in previous years, shipments are still largely delayed, he added. Deliveries will be at least a month later than usual, and shipping will be tighter and more expensive later this month and next month, he said.

The cost of raw materials used in small commodities has also climbed this year, biting into profits at manufacturers. Prices of raw materials to make artificial Christmas trees soared, and components such as chips and light-emitting diodes are in short supply, according to Zhu.

Manufacturers are trying their best to fulfill contracts though business is unprofitable. Weijiule is striving to keep clients for this and next year, according to Qiu. “We must hang in there because the coronavirus will come to an end.”

Editors: Dou Shicong, Futura Costaglione