Fashion brands, retailers and other importers are facing the potential of supply chain disruption this Summer, as Shanghai factories prepare for partial and complete closure in advance of the September G20 Summit in Hangzhou, close to China’s largest city.
Global forwarder MIQ Logistics are reporting that their Shanghai office are receiving increasing anecdotal evidence that factories in Shanghai and Hangzhou are being instructed by unspecified officials to prepare for slowdowns, partial and total shutdowns ahead of the G-20 summit.
Apparently related to a clean air campaign, factories could reduce or cease production starting as early as June.
With the Summit not opening until September, importers sourcing from the Shanghai area could face a summer of supply chain disruption.
MIQ Logistics will continue to monitor the situation and are seeking official clarification.
“We would not normally go public with unverified reports, but official comment on issues like this is unlikely and our Shanghai office’s source has been proven reliable in the past.
“The potential disruption for importers is so significant, that I felt it would be irresponsible not to share. Importers should have the opportunity to ask their vendors, off the record, if they are being instructed to interrupt production in the summer.”
Phil Sawdon, MIQ Logistics UK, Operations Director