Power Cuts in China Stall Factories, Risking Shortages and Delays for Shippers
The Chinese government has enacted power restrictions in several provinces, cutting production at factories to meet governmental emissions restrictions. Delays are likely to worsen as a result of the power cuts.
According to The Loadstar, factories in highly industrialized provinces experienced power drawdowns through September. Chinese economic planning officials initiated the rolling blackouts as part of an initiative to reduce carbon emissions through strict enforcement.
The drop in factory activity arrives as American shippers are clamoring for more inventory ahead of the holiday season. Shippers already face severe delays from port congestion, vessel capacity limitations, and more. Now, supply constraints are likely to worsen the bedlam.
Per reports, factories that produce components for popular smartphones and other devices are among those affected by the blackouts.
Securing inventory for pre-holiday sales may become more difficult as China continues power reductions and factories bear the consequences. Consult with Scarbrough International for further insights and assistance.