Big Delays for Kitchen Companies Manufacturing in China.

Many kitchen companies manufacturing in China found they have been experiencing increased lead times and delayed deliveries. Chinese manufacturing, has been devastated these past weeks by a reduced Chinese labor force and business closures caused by the coronavirus. Added to this, there is now a global shortage of shipping containers. The widespread effect of the coronavirus pandemic still continues and China is facing the brunt of it.

 

Ships in Quarantine

In China, factories have now resumed production after the Covid-19 pandemic shutdown. But now face problems getting goods out due to a shortage of shipping containers, creating a bottle-neck. With traffic being disrupted, the effect of coronavirus on shipping has been significant. It caused an unprecedented number of blank sailings on ocean freight, and then a spike in air freight rates due to low belly capacity. The shortage of containers is due to the rebound in economic activities in China, as well as the peak period demand for goods in the US and European markets owing to the Christmas and New Year holidays. At the same time, demand for American and European goods from Asian markets has been weak, which led to an uneven trade flow.

 

Shipping Container Shortages 

Global shortages of shipping containers becomes a major issue for the first half of 2021. Forwarders have had to scramble for boxes as the empty containers so desperately needed back in Asia is scattered around depots across Europe. To mitigate the serious equipment imbalance, ocean carriers have adopted an aggressive strategy for European exports, temporarily suspending bookings, preferring to fill backhaul ships with as much empty containers as possible. This caused major supply issues for many companies around the world and experts predict this will continue to have a negative impact on the world economy. 

 

While many kitchen companies are concerned with resolving pressing transportation and supply chain issues at this time. European Kitchen manufacturers have been experiencing an increase in demand. The White Kitchen Company and Modern Kitchens have a quick 9 week turnaround from order to bespoke manufacture. Click the links for more info on our Bespoke Furniture and our solid wood Kitchens, or call us on 01604 435835 .

 

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