FoxconnSource: Bloomberg

What you need to know

  • Tensions are rising between India and China.
  • It has led to a series of boycotts and demonstrations.
  • Apple's supply chain has been disrupted because of extra scrutiny of imports from China.

A report says that Apple is "battling to free stuck shipments" in the port of Chennai, delayed by increased scrutiny of goods from China coming to India.

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As reported by Reuters:

India's additional scrutiny of imports from China has disrupted operations at plants owned by Apple supplier Foxconn in southern India, three sources told Reuters, and other foreign firms are also facing delays as tensions between the two countries build.

Customs officers at Indian ports have held back shipments from China and sought additional clearances after deadly clashes at the disputed Himalayan border last month. The checks have been imposed without any formal order.

The report notes that "several companies" including Apple and Dell are "battling to free stuck shipments." The report says that hundreds of employees at India's two Foxconn plants have had "no major work to do this week" because of delays. It is reported that over 150 Foxconn shipments of unknown size are stuck at the port of Chennai, although some are slowly being cleared.

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One source reportedly said that Foxconn was in "a very bad state" and that workers were staying in their dormitory because there was no work.

Government officials said the heightened measures were temporary, but if they continue they may have an impact on Apple's supply chain and delivery times to customers in the region.

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