Bubble

In foreign trade, 'Bubble' is not a standard trade term (such as FOB, CIF), but an industry slang that usually refers to a false prosperity in market prices or an asset bubble. Specifically, it describes a rapid increase in the price of a commodity (such as raw materials, freight rates, exchange rates) due to speculation, hype, or short-term supply-demand imbalance, severely deviating from its intrinsic value, and may eventually burst, causing prices to plummet. Usage scenarios are common in bulk commodity trading, shipping markets, or exchange rate analysis, for example, 'freight bubble' refers to a short-term surge in ocean freight rates. Note: Foreign trade practitioners need to be alert to bubble risks, avoid signing long-term contracts or hoarding goods at high prices; at the same time, distinguish 'bubble' from normal price fluctuations, as the former is often accompanied by irrational exuberance. Unlike 'premium', a bubble emphasizes unsustainability and the risk of bursting; unlike 'inflation', a bubble is usually confined to a specific market rather than overall prices. Understanding this term helps companies with risk management and pricing decisions.