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Government Imposed Power Outages Halt Production Across Major Factory Hubs

The Chinese government has recently imposed severe power rationing on major manufacturing hubs and provinces across the country in an effort to address rising carbon emissions. More than ten provinces, including the major production hubs of Guangdong, Jiangsu, and Zhejiang, have been hit by forced power outages with no end-date yet announced. The sudden drop in factory output is expected to create a turbulent, temporary set of market conditions that will further challenge supply chains. Other factors affecting space availability include the recent lockdown of the Fujian province (Xiamen port) due to surging Covid cases; the approach of Chinese Golden Week preempted by factory slowdown and carrier blank sailings; and new entrants to the Trans-Pacific Eastbound trade market offering additional capacity via chartered vessels.

As the Trans-Pacific market begins to change shape yet again, OTS will continue to monitor development and will keep our customers informed accordingly. If you have any questions, please do not hesitate to reach our to your OTS Sales Representative for more information.