Why Christmas May Be Stuck In A Shipping Container

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The whole world would not be possible to celebrate Christmas without China’s exports. As China is the manufacturing powerhouse and factory of the world. Most of the production facilities and ports in China have fully or partially shut down due to energy crunch and Covid-19. The power cuts have taken place in the Coastal province of Guangdong in which top toy factories are operated. China’s northeastern port of Ningbo which is one of the world’s busiest container ports and the port in Shenzhen were closed. Also, Manufacturers are facing issues like an increase in the cost of raw materials, problems in the transport system, and labour shortages.

Port congestion of many countries has increased for a few weeks now and most of them are not returned yet. Because of that China does not have enough containers to ship.

Now the voyage for a container from Asia to the US, UK, and Europe takes a very long time like 70 days to reach sales point. It takes only 2 weeks in the normal condition. Then the seasonal deliveries will be further delayed due to all these reasons.

Due to the US-China trade war, some of the manufactures were moved their production from China to other Asian countries like India and Vietnam. But Ho Chi Minh City in Vietnam was under lock-down for the last few months. China’s huge toys manufacturing industry capabilities could not replace with other countries within a few years as well.

We have a hope that these supply chain problems will be resolved in the upcoming year as more containers come to the market.

Christmas will bring together everyone’s happiness without all these disruptions.

Source : BBC News | Mariko Oi / Asia Business correspondent

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