Dear all Valued Customers
The COVID-19 outbreak has caused supply chain disruptions for nearly three-quarters of U.S. companies, and many are already pricing in revenue losses this year as a result.
Data shows global production out of China fell to an all-time low last month, with freight and shipping slowing dramatically as the virus has shuttered factories and container ports.
Quarantined workers and shortages of components have further crimped the availability of goods from China, which is the world's hub for manufacturing.
Of the companies surveyed that expect supply chain impacts (80% said yes), most expect the severity of the disruptions will increase after the first quarter of this year.
The virus' impact has not yet been quantified, but the survey from the Institute for Supply Management — the first of its kind — shows just how widespread its impacts have already been for American businesses.
The story the data tells is that companies are faced with a lengthy recovery to normal operations in the wake of the virus outbreak
For a majority of U.S. businesses, lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move product to the United States
Majority of firms with revenues of less than $10 billion, reported a laundry list of disruptions that have already resulted from the outbreak.
Manufacturers in China report operating at 50% capacity with 56% of normal staff.
More than 44% of respondents said they did not have a plan in place to address supply disruption from China.
Six in 10 (62%) respondents are experiencing delays in receiving orders from China.
More than half (53%) are having difficulty getting supply chain information from China.
Nearly one-half are experiencing delays moving goods within China (48%).
Almost one-half (46%) report delays loading goods at Chinese ports.
Manufacturers' unease grows with coronavirus outbreak
Manufacturing in China partly resumes.
Nearly 40% of electronics manufacturers feel worse about the impact of COVID-19 on their business than they did a month ago
Although the coronavirus outlook in China is improving, elsewhere the situation has deteriorated.
Plus, most companies are now dealing with problems on both the demand and supply sides of their businesses.
Coronavirus dents tech's supply chain
The novel coronavirus has just begun to shut down offices and public gatherings across the U.S but its impact on hardware and components production in China started weeks ago, and the flow of goods out of China's factories has been slow to recover.
The global tech economy's just-in-time supply chain has never faced a disruption quite like this one.
And while many observers are guardedly optimistic, no one knows for sure yet how this crisis will play out or what sorts of shortages the industry might still face.
Brace for coronavirus supply shocks
Products from major American companies including Apple, GM, Coca-Cola and even Facebook may soon become unavailable, as the fallout from the COVID-19 outbreak backs up and shuts down global supply chains.
Consumers should brace themselves for products to go missing in the coming weeks and months — and it may not be the ones they expect.
As a valued customer, I hope that you will continue to trust us to source the best options for your supply chain needs.
If you have any questions or concerns, please reach come back to me personally on email so I can assist you one on one at this time
Updated Major U.S. Ports Operations Status
Below is a general overview of the operations BRI has been able to gather for most major U.S. ports.
This list will be updated as information is made available.
Port of Seattle/Tacoma - Seattle and Tacoma have a rule change that all vessels coming from "at risk countries" must wait 14 days prior to being piloted to the port. There is limited vessels affected by this ruling at this time.
Port of Los Angeles & Long Beach – All ports are open and operating normally at this time. All containers must be picked up by shippers and empties/chassis returned in order to avoid terminals reaching their yard capacities.
Port of Houston - The Port of Houston responded quickly yesterday and closed operations after an employee reportedly tested positive for COVID-19. After a thorough investigation, the appropriate quarantine measures were taken for the effected and port deemed safe to reopen at 7:00 p.m.
Port Miami - Port Miami closed today, March 20, due to low import volume. The terminal director stated that the port had low imports from China into the port due to blanked sailings, but would be extending free time for all import containers.
The below port status remain unchanged:
Port of New York & New Jersey – For freight originated from Asia, the port has had slightly more time to plan. 13 total blanked sailings are expected and 3 more in April. When vessels do return, the port expects issues with rail car supply for intermodal and chassis availability. As a result, NY/NJ is working with terminal operators to pre-empt this issue as much as possible.
Port of Virginia (Norfolk) – Volumes coming out of China are beginning to, albeit slowly, return to normal. With recent infrastructure improvements, the port has added capacity for containers but expects disruptions are still inevitable. The port also continues to operate a weekly barge service to Baltimore and Philadelphia, in the efforts to further alleviate potential congestion.
North Carolina Ports (Wilmington & Charleston) – While blanked sailings will continue to cause effects, Wilmington has recently made improvements to expand velocity. Current construction is furthering this initiative. Congestion is expected, but with the growth – hopefully minimized. Charleston is expecting a 20% drop in volume through April. No terminals closed as of yet as China-origin freight is only 25% of Charleston’s business exposure. The port is looking to summer for business to normalize.
Georgia Ports (Savannah) – The Georgia Ports Authority anticipates a double-digit decline in Savannah’s March volumes due to 30 blank sailings, and while Saturday hours will be temporarily cut, no weekday shifts will be eliminated or hours curtailed. With recent improvements, the throughput of the port has increased significantly. As a result, the Port of Savannah hopes this will minimize disruptions.
Port of New Orleans (NOLA) – Volumes were down significantly in February due to blanked sailings for China freight. NOLA is experiencing some empty container shortages for exports, but many of their carriers source empties from Central America, so this issue is minimal. However, NOLA does also have carriers that source from Memphis and Dallas, where supplies are tightening.
To ensure you maintain visibility to your shipments as they move through the supply chain, please take advantage of our shipment management tool (PATHWAY).
For USA Customers to obtain a login for your account, please email email@example.com
BRI USA will continue to closely monitor the coronavirus situation and its effect on clients’ global supply chains.
Please feel free to respond to this email or contact your assigned Customer Solutions Representative, if you have any questions.
As always we thank you for your support and wish you all well at this time.
Keeping you updated,
BRi Customer Solutions Team
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