With 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:
- Centers for Disease Control (CDC) COVID-19 Home Page
- Pennsylvania Department of Health Updates
- International Air Transport Association (IATA) Travel Ban Updates
- TrendForce Analysis of COVID-19 Impact on High-Tech Industry
- FedEx International Trade Bulletins
- Supply Chain Disruption Planning Checklist
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.