UPDATE Coronavirus Impact on the Supply Chain 3

UPDATE: Coronavirus Impact on Supply Chain

The extended CNY holiday was scheduled to end today in most areas of China, with the certain exceptions such as Hubei province region, the epicenter of the outbreak. The China government’s newly imposed health and safety requirements have delayed businesses from opening as the government site inspections required for the stamp of approval are not yet complete for many companies who have taken the required measures to be compliant. Apart from awaiting governmental approvals, some businesses have announced on re-openings February 14th & 17th. Our continuous communication throughout our network leads indicates it will be more of a staggered approach with limited staffing permitted and gradually increased over the weeks in an effort to control the viruses transmission.

Another challenge will be the availability of trucking services said to be related to the travel restrictions leaving drivers unable to return to their cities for work. This along with drivers declining inland routes to maximize their trips per day will focus on port city services. In some cross-border trucking has ceased as countries have restricted or completely closed their borders with mainland China. These closures will have a definite effect on those countries such as Vietnam and Cambodia, whose production materials are heavily supplied by China.

Uncertainty looms and time will be the best indicator of how the return to work will develop as companies services begin to resume.

To assist in the constantly changing landscape of openings and service availability, we have prepared a table detailing the the current environment in each city that lists the services directly affecting the logistics supply chain. All information will be updated daily and sent to you via our client bulletin. Click on the link here to open table.

Contact your OEC/CGL representative as soon as possible with your upcoming shipment information and they will contact our overseas offices along with your suppliers and guide you through the available options to expedite your cargo.