Supplies of goods from the Far East will be significantly reduced this autumn by the Dual control of energy consumption policy affecting China's industrial output.

What is the Dual control of energy consumption policy?
In order to meet China's carbon emission reduction target for 2021, the supply of electricity in the country is being reduced or cut in many industries, particularly those with high energy consumption and pollution levels, such as ceramics, chemicals, nonferrous metals, textiles and plastics. This means that some factories are only running two days a week, or shutting down completely for several weeks at a time. Some of China's key regions of industrial production, such as Guangdong and Jiangsu provinces, have been hardest hit by the measures.

The 'dual control' policy is not new, but is having a major impact now because of a number of factors, such as the tight carbon emission targets China has to meet, the vast increase of energy consumption and energy intensity after the Covid pandemic shutdowns and the shortage of coal in much of China (which recent reports have shown that in some coastal regions can only support power supplies for about 10 days).

What does this mean for consumers in the UK?
Supplies of some goods will be delayed, accelerating the problems already being experienced in the UK due to the shortage of HGV drivers, the fuel shortages and the global shipping crisis which has seen popular goods disappear from supermarket shelves this year. It is too early to tell how it may affect our own supply chain, but at Replenishh we are monitoring the situation closely and responding to any changes we feel may be significant for us.

For suppliers and manufacturers which already feel the impact of the Chinese New Year in February, this is a further shock that will need to accomodated in the months ahead.

To help mitigate against such disruption, Replenishh offers a Long Term Stock Agreement service. You are able to order stock at a secure price for the lifetime of the agreement, avoiding price increases and enabling you to pre-book deliveries on specific dates. Alternatively, let us know as you need the stock by “calling it off” throughout the period of the agreement. All stock will be pre-ordered in advance, allocated to your account and available exclusively to you. It will also be invoiceable on the date of despatch.

At Replenishh, effective measures, procurement initiatives and forward thinking have allowed us to continue to provide a great customer experience without compromising on the product quality and customer service.

If you are interested in a Long Term Stock Agreement, please contact us for more information.