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More Supply Chain Disruptions in China

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Just when you thought things couldn’t get worse with Supply Chain Disruptions, now comes word that there are continuing power outages throughout China impacting factory production.  Many factories across China have begun closing early due to government mandated power outages which currently have no end date in sight. It is anticipated that the limited factory hours will continually slow down production across impacted provinces further straining already strained supply chains just as we enter the Peak Shipping Season.

Since the beginning of the nationwide crackdown in mid-September, it has affected mostly industries with high energy consumption, ranging from petrochemicals and textile printing to aluminum production.  As China prepares for Golden Week, a weeklong national holiday, the risk of extended shutdowns and further delivery delays of key industrial goods is heightened.

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