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Transcript/Script((PLAYBOOK SLUG: China Supply Chain
HEADLINE: China, COVID-19, Lunar New Year: Perfect Storm for Supply Chain Delays
TEASER: US businesses are forced to adjust as events in China postpone delivery of goods
PUBLISHED AT: Thursday, 02/3/2022 at 8:10 am
BYLINE: Elizabeth Lee
CONTRIBUTOR:
DATELINE: Washington
VIDEOGRAPHER: Roy Kim, Elizabeth Lee
PRODUCER: Elizabeth Lee
SCRIPT EDITORS: Reifenrath, Jepsen
VIDEO SOURCE (S): AFP, AP, Reuters
PLATFORMS (mark with X): WEB __ TV _X_ RADIO _X_
TRT: 3:20
VID APPROVED BY: Jepsen
TYPE: TVPKG
EDITOR NOTES:))
((INTRO:))
[[The most recent COVID-19 cases in China have put even more stress on an already strained supply chain, causing delays in the shipping of everyday items to the United States. VOA’s Elizabeth Lee shows what one business is doing to alleviate the problem.]]
((NARRATOR))
Yung Schulz imports clothing and other goods from China that eventually end up at U.S. department stores. Before the pandemic, it took three weeks for her products to travel from China to her warehouse in Southern California. But now, she says, it takes an additional 45 days at least.
((Yung Schulz, Golden Grove Trading Inc. Owner))
“Yesterday, I just received an email. We have five containers supposed to (be) sailing on January 22nd. However, they say, 'Sorry, it will be February 1st.'"
((NARRATOR))
Supply chain experts say the delays will continue to be unpredictable, in large part because omicron and delta strains of the coronavirus have been detected in many Chinese provinces, including port cities. That, combined with China’s zero-COVID strategy of lockdowns and mass testing, are causing ripple effects in the global supply chain.
[[FOR RADIO: John Ferguson specializes in globalization, trade and finance at Economist Impact]]
((mandatory cg: “Skype”))
((John Ferguson, Globalization, Trade and Finance Expert))
“So before omicron and before the latest lockdowns and partial lockdowns in China, global supply chains were already stressed and have been stressed for a couple of years. But this latest round of events there in China and Chinese ports has just added to what is already a very difficult situation.”
((End Skype))
((NARRATOR))
And if one Chinese port closes, driving to another port isn’t so simple.
[[FOR RADIO: …says Schulz]]
((Yung Schulz, Golden Grove Trading Inc. Owner))
“In China, especially a bigger city, they don't welcome another city’s resident to arrive, because they believe if from outside, the risk is too high. So they do a quarantine 14 days, minimum.”
((NARRATOR))
Even when the container ships arrive in the U.S., there are more delays.
[[FOR RADIO: says Atul Vashistha, chief executive officer of Supply Wisdom, a supply chain risk intelligence firm.]]
((mandatory cg: “Skype”))
((Atul Vashistha, Supply Chain Risk Intelligence Expert))
“There's a container shortage, but we also have a shortage of workers here in warehouses, in trucking.”
((End Skype))
((NARRATOR))
There is also a financial cost to the delays. For example, a container that used to cost three to four thousand dollars to ship is now more than $20,000. The Port of Los Angeles hasn’t seen an impact from China’s latest COVID cases, but …
[[FOR RADIO: …according to port spokesman Phillip Sanfield…]]
((mandatory cg: “Skype”))
((Phillip Sanfield, Port of Los Angeles))
“We are expecting a slowdown in February from China and other Pacific Rim countries because of the Lunar New Year. Whether the omicron kicks that even further, we'll just have to wait and see."
((End Skype))
((NARRATOR))
Analysts say dependence on China for manufacturing has exacerbated the supply chain problem.
[[FOR RADIO: Again, supply chain expert, Atul Vashistha]]
((mandatory cg: “Skype”))
((Atul Vashistha, Supply Chain Risk Intelligence Expert))
“Companies are realizing 'hey what's now two years later (since COVID-19), if I had to take action two years ago and looked at alternate sources of supply, maybe I would have been a better position.”
((End Skype))
((NARRATOR))
Don DiCostanzo, CEO of Pedego Electric Bikes, did just that. At the time, he looked to diversify where his bicycles were made because of the tariffs for frames made in China, never expecting a pandemic would hit.
((mandatory cg: “Skype”))
((Don DiCostanzo, Pedego Electric Bikes))
“The current crisis right now we've mitigated by having a steady flow of shipments coming from Vietnam, China and Taiwan. They have — it seems that they seem to have shutdowns at different points in time.”
((End Skype))
((mandatory cg: “Don DiCostanzo”))
((NARRATOR))
DiCostanzo is also keeping four months of inventory instead of two.
((End Courtesy))
((NARRATOR))
Amid the uncertainty over what COVID-19 will bring next, experts agree that 2022 will continue to bring supply chain disruptions and higher costs for consumers.
((Elizabeth Lee, VOA News))
NewsML Media TopicsArts, Culture, Entertainment and Media
NetworkVOA
Location (dateline)Washington
Embargo DateFebruary 3, 2022 09:45 EST
BylineElizabeth Lee
Brand / Language ServiceVoice of America - English
