Coronavirus Supply Chain Update: February 3, 2020
As of February 3rd, 2020, the situation regarding the Novel Coronavirus outbreak remains incredibly fluid. Following direct discussions with our suppliers across China today, our current expectation is that most factories will begin returning to work between February 10th and 12th.
While this may provide some reassurance, businesses should be prepared for delays to both production and shipments due to the extended holiday period and the time required for operations to normalize following the Lunar New Year. Many factories remain uncertain about how quickly staff will be able to return, and ongoing travel restrictions are expected to have a continued impact on business operations and logistics networks.
Coronavirus Supply Chain The Current Landscape
The Novel Coronavirus outbreak has already begun to reshape how global supply chains operate. While the health and safety of workers remain the priority, businesses are now facing the reality that production and delivery timelines are shifting. The following areas are most affected:
- Factories and Workforce Availability: Although factories are officially reopening after the extended holiday, many are reporting worker shortages. Restrictions on movement between provinces make it difficult for employees to return to their workplaces.
- Logistics and Shipping Delays: Ports are expected to face congestion as shipments gradually resume. This may create a backlog that affects not just China’s exports but also importers waiting for critical goods.
- Airline Suspensions: A growing number of international carriers have suspended flights to and from China. This reduces freight capacity and may increase transport costs once shipments start moving again.
- Business Operations: Companies worldwide that rely on Chinese manufacturing must anticipate production delays and factor in longer lead times.
Coronavirus Supply Chain What Businesses Should Expect
Over the coming weeks, companies should be prepared for continued disruptions. Even when factories reopen, production levels will likely remain below capacity due to workforce shortages, stricter health checks, and government regulations. Logistics providers will need time to catch up with delayed shipments, and further travel restrictions could add to the complexity.
This disruption is not limited to one sector—industries such as electronics, apparel, consumer goods, automotive, and medical supplies are all expected to feel the ripple effects. Businesses depending on just-in-time delivery or seasonal launches should consider contingency measures to avoid stock shortages.
Coronavirus Supply Chain ET2C’s Response
At ET2C, we are working closely with our local partners and suppliers in China to provide clients with the most accurate and timely information possible. Our priority is to:
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Provide live updates on factory status, port activity, and logistics developments.
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Identify risks early for clients with open orders or scheduled shipments.
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Offer contingency solutions, including exploring alternative sourcing regions where feasible.
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Maintain communication through direct account manager contact, website updates, newsletters, and social media channels.
Although our offices in China are scheduled to reopen next week, there may still be challenges with staff returning on-site. To address this, we are implementing contingency measures to ensure service levels remain uninterrupted.
Coronavirus Supply Chain Looking Ahead
The coronavirus outbreak has highlighted the vulnerability of global supply chains to sudden disruptions. While the full impact is still unfolding, it is clear that businesses must be agile and proactive in managing their sourcing and logistics strategies.
ET2C will continue to monitor developments closely, working hand-in-hand with clients to minimize disruption and adapt to rapidly changing circumstances. Our commitment remains to safeguard your supply chain and support your business during this challenging time.
Coronavirus Supply Chain Contact Us
For specific questions or concerns, please reach out to your ET2C account manager directly or email us at contact@et2cint.com.
For further updates on global trade and supply chain developments related to the coronavirus outbreak, please refer to the World Health Organization (WHO) and the International Air Transport Association (IATA).
