Upcoming Possible Supply Chain Shortages & Constraints

Posted on 16 Mar 2022 | Posted in Blog, News | 0 comment

Dear, Customers

As many of you may be aware, some lockdowns are occurring this week in China, and the outbreak has spread farther and faster since the early 2020 outbreak in Wuhan, China. China’s Zero-Covid Policy has put a lockdown early this week in many critical parts of the country where factories, suppliers, and the markets are located. China’s government and local provinces have suspended all operations in these major cities, impacting supply chains and many other industries. Essentially these cities are in mandatory lockdowns for everyone, making it so that production, goods, and services are halted, and logistics are at a standstill.

How long can we expect a supply chain constraint?

Currently, China has been put on a 7-day lockdown. However, based on trending patterns, other cities were also put on lockdown for seven days, only to be extended for a couple more weeks due to not controlling the outbreak. Therefore, considering the previously stated, it is highly likely that it may be extended further than seven days.

These shortages and impacts can cause shipping cost increases from the couriers as well as products not being available, driving price hikes in some cases.

After the lockdown is lifted, what is the supply chain constraint?

Due to many factories or businesses tied to China, the supply chain will be filled with large orders when the lockdown is lifted. This will cause a spike in shipping costs, shipping transit times, logistic operations, and shortages of goods that can take time to get back in the market and stabilize.

We will be closely monitoring the situation and provide updates as it improves. We are all hoping the supply chain is not interrupted and businesses are as they always are. However, we wanted to make sure that all our clients are aware of this situation to better prepare and plan ahead. As always, your success is our success, and we thank you for your business and support.

Kind regards

Crazy Parts Team

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