How to Deal with COVID-19

by Lauri Moon

Image result for coronavirus imageWith the global spread of COVID-19 (the coronavirus disease), IMC is providing educational guides and support for our manufacturing clients to help them plan, prepare and protect their operations.

Here are a few resources if you’re concerned about the impact of COVD-19:

If your business is impacted, IMC can provide no-cost assistance to help you understand your next steps. Don’t delay, contact us today!

Current Updates (February 21, 2020)

  • Freight forwarders are reporting significant increases in air freight charter rates to/from China, and are expecting short-term general air freight cargo rates rate spikes as production ramps back-up in China.
  • Containerized refrigerated cargo to China is being diverted to alternative ports due to existing reefer plug-in outlets in the ports being fully used due to cargo not being able to move inland.
  • Internal transport (rail, truck) within China is still severely impacted.  Export capacity from southern and eastern China are in a better position than the central and western parts of China but still well below normal levels.  Transport and port activities around Wuhan and Tianjin basically remain at a standstill.
  • The rate of new Infections within China is starting to slow, however infections outside of China are increasing, especially in South Korea.
  • Factories are slowing resuming production in areas outside of the quarantine zones (e.g. in the Shenzhen/Guangzhou area, Shanghai/east coast areas, etc.)
  • There are some initial reports that the supply of available empty containers for loading in North America is getting tight.

Previous Updates (February 18, 2020)

  • Ships entering ports in Australia, Singapore, the United States and others have various docking restrictions in place until 14 days after they left a Chinese port.
  • Travel bans and limitations in China have slowed the movement of hard-copy shipping documents to ports – a step that is delaying the clearance of import and export shipments into and out of China.
  • Metal industry is expecting a reduction in supply due to a significant part of China’s metal production being based in affected areas.
  • General production in China is likely to be impacted by delays in their full workforce returning to work and a slow, general ramp-up of parts from suppliers to their assembly plants and factories.
  • Ocean carriers have “blanked” or cancelled sailings into China to avoid having empty vessels returning to Europe and North America.
  • Passenger airlines have reduced or eliminated flights to China, reducing belly cargo capacity and impacting total air freight capacity into and out of China.
Thanks to our sister center CIRAS for sharing some of these resources.