Since the beginning of 2020, global logistics has suffered from the impacts of the pandemic, which caused a shortage of containers, delays in ship calls, congestion at ports and an increase in the price of Chinese sea freight.
O Canal Solar, in fact, brought several reports showing the constant rise in the price of Sea freight. Recently, Chinese authorities ordered companies to stop production in some locations, such as Wuxi and Shanghai.
According to the Chinese government, the measures adopted are strict and aim to control contagion. However, they cause significant interruptions in local manufacturing and transport activities, which ends up putting pressure on the country's internal land logistics system and affects the international chain.
These restrictions are impacting approximately 200 million people and more than 20 Chinese cities would be under total or partial lockdown.
Manufacturer Sunova, for example, stated that the pandemic situation in China is still serious, highlighting the Chinese government's decision to impose a lockdown in some regions of the country.
“Since the end of March, Covid-19 is getting more serious day by day in China, especially in Shanghai, Jiangsu and Zhejiang. Our BOM (Bill of Materials) suppliers have to stop production, materials cannot be transported due to government inspection. Our factory has also been closed from March 31 to April 6,” it said in a statement.
Still according to the company, all manufacturers, including Sunova, have no choice but to stop production. Furthermore, the company highlighted the difficulties in international logistics.
“Almost all entry and exit points in our city are closed and containers cannot be transported to the port. Containers cannot arrive at Shanghai Port, Taicang Port, Ningbo Port, almost all ports as usual. It took a lot of effort to send some of the containers to the ports,” the manufacturer added in a statement.
The company also clarified to the Canal Solar, with recent events, the supply chain is very tight and it is difficult to deliver goods and for this reason, it will open its own warehouse here in Brazil to guarantee supply.
“As part of our strategy and service structure, Sunova should also have a customs warehouse in 2022 in the city of Itajaí (SC) where the company's office in Brazil is already located”, says Wellington Araujo, general director of Sunova in Brazil.
“This investment aims to meet demands with a safety stock, where our partners are looking for products that have already been nationalized “just in time” to meet more immediate demands. This alternative also becomes quite viable in situations of logistical bottlenecks in China, as we are currently experiencing. We will also dedicate part of this safety stock for possible exchanges under manufacturing warranty, offering a faster and more advantageous alternative for our customers in Brazil”, he concludes.
