POWER CUTS HIT CHINA FACTORIES AND GIVE CONTAINER SHIPPING ANOTHER SHOCK

2021-11-08

Factories in at least ten Chinese provinces have either cut output or closed temporarily this month, after government-imposed power cuts to curb carbon emissions. By Friday, at least 10 publicly listed companies told the Shanghai and Shenzhen stock exchanges their factory output had been hit by the power cuts, and their 2021 earnings could be adversely affected. Affected provinces include Jiangsu, Guangdong and Zhejiang, which are among the most industrialized in China. The provinces are also home to China's busiest ports, Ningbo, Guangzhou, Nansha, Yantian and Shekou. And Jiangsu province lies along the Yangtze River Delta and its container exports are usually processed by Shanghai or Ningbo.

As this is the peak season for container shipments to US and European retailers, the new moves could exacerbate delays in receiving shipments at the ports, especially when the power cuts last beyond the end of September. And congestion on the US west coast has held up shipments, with some 70 ships waiting outside Los Angeles and Long Beach due to surging imports and insufficient trucking and land-based logistics.

Via: The Load Star
POWER CUTS HIT CHINA FACTORIES AND GIVE CONTAINER SHIPPING ANOTHER SHOCK