Showing posts with label China manufacturing. Show all posts
Showing posts with label China manufacturing. Show all posts

Tuesday, July 20, 2021

Disruptions in the Global Supply Chain and How that Affects Promotional Product Orders

New Coronavirus Outbreak in China 

Over one year into the coronavirus pandemic and we started to see things getting back to normal in many parts of the world. At least we started to. But then an out break from the southern region of China led to more problems at the ports and possible product price increases. 

The global supply chain continues to be impacted by the Covid outbreak causing prolonged replenishment times, decreased freight capacity, and product price increase across a variety of categories.  The decreased freight capacity is one of the biggest setbacks we have yet to see.  To expand, a normal container coming from China going to the East Coast would usually cost $3,000 dollars. Now, that same shipment would cost $9,000 dollars. 

Even at this heightened price, there is no guarantee of regular, on time, sailing dates. Therefore, suppliers are being forced to use premium freight which is an increase of at least 35%. 

Monday, February 17, 2020

PPAI Addresses Coronavirus Concerns


In a recent webinar, Promotional Products Association International (PPAI) addressed the economic impact of the coronavirus, which is already being felt along global supply chains that run through China. Customers have been asking about two main concerns, "Are there going to be delays on shipments of promotional products?," and "Can I catch the coronavirus from touching a product manufactured in China."

The webinar, entitled “The Coronavirus: A Conversation With Leading Global Experts,” was hosted last week to address these two main concerns. The webinar was facilitated by Jonathan Isaacson, CEO of Gemline, a leading promotional products supplier, and featured the expertise of top specialists:

  • Dr. Joseph Eisenberg, chair of epidemiology, University of Michigan;
  • Dr. Mary Gallagher, director, Center for Chinese Studies, University of Michigan; and
  • Peter Martin, vice chairman, FocusPoint International Crisis Management

Coronaviruses are fairly common, causing the common cold for example. This outbreak is different because it was transmitted from animals to humans and the way it spreads is different. Another factor here is that since it is a new virus, people do not have any prior immunity to it to help fight it.

A concern addressed by the panel centered around the potential risk of the coronavirus being transmitted on products and packaging being imported from China. Eisenberg noted that flu viruses can survive on surfaces for just a few hours. With a general transit time of three days (up to 14 days if by sea), it is unlikely that the virus can survive on surfaces for these shipping durations.

When asked whether we are seeing the right response to the coronavirus from a public health perspective, Eisenberg said, "In respect to risk in the U.S., yes, the risk is incredibly low—especially when you compare it to the flu, which kills of tens of thousands of people every year in the U.S. Thinking of that relative risk, there should be little concern about the risk of getting coronavirus in the U.S.”

According to Gallagher, the Chinese government is considering whether or not to postpone two large governmental meetings in March. She said there is quite a bit of political sensitivity on the issue. From a crisis management perspective, Martin noted there is still a lot of indecision and that approaches are changing often during this time.

Gemline recently sent a letter to promotional products representatives discussing possible production implications, stating "In terms of production, we are unsure as to how this will affect our China production, or freight movement within and leaving China." A few of the factors that could impact delivery include the location of the factory, shopping ports, staffing levels, and other internal restrictions placed by the Chinese government. Isaacson ended the letter saying Gemline will continue to keep its customers updated as the situation evolves.

You can continue to follow this developing story in Promotional Product Business Newslink.