Economy - Power shortage puts logistical systems under pressure - French

The logistical systems between major manufacturers and their suppliers in China are increasingly coming under pressure and are in danger of falling apart, said Paul French, director of Access Asia at the IFLN Membership conference on Monday in Shanghai.
While many foreign invested companies got preferential treatment during the ongoing power shortages, their suppliers – mostly smaller private enterprises – have increasingly trouble in doing their share of the just-in-time systems that has developed over the years. “Most of them have very small margins,” said French, “we have not yet seen them going out of business in a massive ways, but these small guys are going out of business. Private companies are not getting enough power.” GM, Siemens and other producers rely for most of their components on local products.
Because of the shortage of power, coals transport get priority over other products, adding pressure on the logistical systems, added French.
(Oh, yes: a speaker from China Shipping did not show up, and I did not have internet access)