Coronavirus Effect on Supply Chains

Coronavirus Effect on Supply Chains

The coronavirus disease 2019 (COVID-19) is delivering some early year disruption to the container shipping market. Chinese factories may be slowly getting back to work but the damage is already done, and there's no guarantee factories will be up to full power anytime soon. China travel restrictions are crimping domestic truck delivery and challenging factories' ability to get crucial components from their suppliers. Unsurprisingly,  the backlog of factory orders is frustrating container lines and importers alike. Cargo owners have few options, with air cargo services connecting to China restricted and container lines blanking sailings due to reduced demand. Check this special page for regular updates on how the industry is responding.

News & Analysis

03 Apr 2020
The pandemic adds impetus to the rush to develop more sophisticated tools that can give shippers better insight into future truck rates, and eventually “forward-looking visibility.”
03 Apr 2020
With freight volumes expected to plunge over the next six months as the US falls into recession, shippers should remember their strategic trucking carriers and work together to weather the storm.
03 Apr 2020
BCOs and drayage truckers need to document unreasonable detention and demurrage charges, but also not contribute to the problem, speakers toldl a JOC.com webcast.
03 Apr 2020
Maersk’s ability to gain greater control of shipments as they move through the supply chain is key to the largest container line transforming itself into a provider of integrated end-to-end logistics.
02 Apr 2020
As consumer demand in the US plummets due to the coronavirus disease 2019 (COVID-19), trans-Pacific carriers are suspending entire strings in addition to blanking additional sailings from Asia in the second quarter.
02 Apr 2020
The Chittagong customs office is open just two hours a day during the lockdown period and is only releasing cargoes carrying food and medicines, meaning containers carrying non-essential goods are backing up in storage.
02 Apr 2020
The risk in the coming week is that more US retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed essential service providers responding to coronavirus disease COVID-19.
02 Apr 2020
US trucking companies are preparing to brake hard once the current surge of essential freight fades. The loss of demand and capacity will complicate the eventual recovery.
02 Apr 2020
A wave of containers is about to hit ports in the US and Europe while retail stores are closed and consumers are shut inside their homes to avoid contracting and spreading the coronavirus.
01 Apr 2020
Former Lykes Bros. Steamship Line President Jim Amoss was a respected and influential advocate for the US-flag liner industry.
01 Apr 2020
Alameda Corridor Transportation Authority this year will feel the declining revenue effects of the economic recession projected to impact Los Angeles and Long Beach and all North American ports.
01 Apr 2020
The Port of Savannah will be closed to truckers on Saturdays this month due to blank sailings and BCOs unwilling to retrieve containers with stores and factories closed due to the coronavirus disease 2019 (COVID-19) pandemic.
01 Apr 2020
A steep drop in cargo through Mexico’s ports in March is just one of several factors roiling the country’s logistics sector, which may see low freight volumes for months, executives say.
01 Apr 2020
Carriers are making huge cuts in capacity with little warning, reflecting the speed with which demand is falling amid deepening lockdowns across major markets.
31 Mar 2020
The container line offering reflects the new reality of Western importers increasingly canceling, reducing and delaying shipments as consumer consumption craters under stay-at-home safety precautions linked to the coronavirus disease 2019 (COVID-19).
31 Mar 2020
The Federal Maritime Commission will engage stakeholders on how it can maintain cargo fluidity in the supply chain during the coronavirus disease 2019 (COVID-19) pandemic in a bid to avoid disruption.
31 Mar 2020
The lengthy apparel supply chain, with its multitude of raw material suppliers, is struggling to cope with a collapse in retail sales and canceled orders.
More free time fails to accelerate Indian cargo clearance pace
30 Mar 2020
JNPT’s own terminal has suspended ground rent charges until March 31, while PSA’s Bharat Mumbai Container Terminals (BMCT) is offering an additional three free days.
30 Mar 2020
Carriers are battling to match their available capacity with demand that is drying up from major economies in Europe that are under lockdown.
27 Mar 2020
Digital truck brokers have found it hard to confidently provide an accurate guaranteed rate to shippers 14 or 21 days in advance because of the unpredictable developments of coronavirus disease 2019 (COVID-19), causing one-off quotes to be higher than normal.
27 Mar 2020
Just as US agricultural exports received a boost from the US-China phase one trade deal, the global economic impact of the coronavirus threatens to put the brakes on ag exports to Asia.
27 Mar 2020
Pressure is building as some shippers fail to pick up containers because warehouses are full or closed due to not being deemed essential service providers responding to COVID-19, or because retailers have requested delayed deliveries at distribution centers.
27 Mar 2020
The European Commission scolded member states for unilaterally closing borders and delaying urgently needed medical supplies for coronavirus-hit countries.
26 Mar 2020
The Port of Charleston will have a sharp decline in roll-on, roll-off volume next month because automakers BMW, Mercedes-Benz, and Volvo have shut plants through mid-April to slow the spread of coronavirus disease 2019 (COVID-19).
26 Mar 2020
CBP issued a statement saying it will no longer accept requests to delay duty payments, after notifying the trade community on Friday that it would consider such requests on “case-by-case basis.”
26 Mar 2020
A patchwork of definitions among Canadian provinces over what is deemed an “essential” business is causing confusion, resulting in freight backlogs due to closed warehouses in Ontario and Quebec.
26 Mar 2020
With little cargo to transport amid the COVID-19 pandemic, carriers are reviewing schedules and service networks and angling for substitute cargoes.
26 Mar 2020
Demand to haul essential freight into areas of the US most affected by the coronavirus disease 2019 (COVID-19) outbreak is soaring this month, causing rates to climb and driver detention to increase, and resulting in difficult conversations between brokers and shippers.
26 Mar 2020
Demand for essential goods and medical supplies is drawing truck capacity even as business shutdowns dry up other sources of freight, a trend that could result in displaced capacity.
26 Mar 2020
JNPT, which handles the majority of Indian containerized freight, has been hit hard by severe truck driver scarcity and drayage capacity issues.
26 Mar 2020
The difficulty in fulfilling cargo contracts amid an increasingly chaotic supply chain and a spreading pandemic is driving forwarders to drastic steps to limit their liability.
26 Mar 2020
The ability to competently assist in challenging conditions is where shipping lines and logistics providers can differentiate their services in an environment where digital tools will take over the standard processes.
25 Mar 2020
Coronavirus-related store closures and a tight New Jersey industrial real estate market have prompted the Port of New York and New Jersey to prepare for possible supply chain disruptions as cargo volumes from China rebound.
25 Mar 2020
Truck drivers can both drive and work beyond regulatory limits if they’re hauling essential goods during the COVID-19 pandemic, and shippers need to do whatever they can to make that easier.
25 Mar 2020
Extensive cutbacks in air and sea capacity are making life difficult for cargo owners, but expedited less-than-container-load (LCL) services and space guarantees from liner carriers offer alternatives for shippers of time-sensitive products.
25 Mar 2020
Measures taken by China to limit the spread of the coronavirus, including shutting down factories and its economy for the better part of a month, will drag down container throughput this year.

Commentary

The coronavirus disease 2019 (COVID-19) puts supply chain in the global spotlight, though, it fails when purchasing, manufacturing and transportation don't come together.

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