U.S. House Speaker Nancy Pelosi’s visit to Taiwan has sparked dissatisfaction in China and announced military exercises around Taiwan, a move that has had ripple effects on global supply chains, with shipping companies taking detours and delaying energy shipments.
Some gas suppliers are rerouting or reducing the speed of gas carriers bound for North Asia, which are expected to affect shipments to Taiwan and Japan this week, people familiar with the matter said.
Shipping companies are reassessing shipping options after China responded to Pelosi’s trip to Taiwan, as Chinese military exercises could further disrupt the world’s busiest shipping lanes.
China announced a few days ago that it will conduct military exercises in six air and sea areas around Taiwan from Thursday (4th) to Sunday (7th).
Ship managers and owners said overall traffic in the Taiwan Strait was normal on Wednesday, but shippers may need to divert ships from the eastern side of Taiwan as China ramps up military exercises there. According to the shipbroker, this will cause about three days of shipping delays.
Nonetheless, due to the peak typhoon season at this time of year, shippers tend to experience similar ocean disruptions, with shipping delays of a few days being fairly common.
Chinese military drills are expected to end next week, and shippers and analysts will be watching closely to see if shipping problems quickly subside.
“We are concerned about whether the drill will drag on for longer and become more intense, affecting the supply chain, but there is no indication that this will happen,” said Huang Huiming, a fund manager at Nanjing Hengyang Investment Management.