China Power Rationing May Improve Supply Chain Situation
As reported by our Chinese counterparts, the Chinese government is enforcing power rationing at their major industrial hubs to reduce carbon emissions. With the sudden power rationing, along with the COVID-19 situation, many of those industrial hubs have seen a marked decline in cargo volume. Some Chinese factories have postponed or delayed their bookings for October, some have cancelled their bookings altogether. Despite the gloomy supply chain picture of the past many months, the power rationing and the production halts, there is optimism among main ocean carriers and new charter vessels in the Asia market.
Because of the market downturn, main carriers are now extending some of their rates, possibly to the end of October. Spot rates to both East and West Coast U.S. Ports are down slightly, and the space situation is improving as well, especially with the announcement to lower rates from the new charters.
Some extra shipping space may be available with the upcoming schedules, especially from the new charters. As always, everyone at C J and our supply chain partners are working tirelessly to assist you. Please contact your local C J representative for details so that we can discuss your current situation based on your needs and availability of space.