Navigating Supply Chain The Impact of the Novel Coronavirus on Global Manufacturing and Logistics
As the outbreak of the Novel Coronavirus (COVID-19) continues to escalate, ET2C International is closely monitoring the situation in collaboration with our trusted local partners and government authorities across key sourcing regions. The health and safety of communities remain the top priority; however, the evolving circumstances are beginning to present significant challenges for global supply chains, particularly in manufacturing and logistics.
Navigating Supply Chain A Fluid and Rapidly Changing Situation
This is a highly fluid event that changes daily, and often hourly. Given the current information, we are already witnessing delays and disruptions in several areas:
- Factory operations: Many factories are experiencing difficulties in resuming normal production schedules after the Lunar New Year. Travel restrictions in specific provinces are preventing workers from returning to their job sites.
- Logistics and shipments: Planned shipments for February are under threat of delay due to both extended holiday closures and reduced capacity at ports.
- Airline suspensions: As of yesterday, several international carriers have announced suspensions of flights to and from Mainland China, with others expected to follow suit. This is a measure to limit the spread of the virus but will inevitably reduce freight availability.
While government announcements initially extended the Lunar New Year holiday to February 3rd in most regions, Shanghai and other key hubs have since extended closures until February 9th. It is anticipated that other provinces may adopt similar measures, leading to further delays.
Navigating Supply Chain Anticipated Challenges Ahead
Based on the current trajectory, it is reasonable to expect:
- Extended delays in production as factories struggle to resume operations due to both manpower shortages and preventative health measures.
- Port congestion and logistics backlogs once shipments begin to move, as supply will likely outpace immediate transport capacity.
- Increased freight costs as carriers reduce capacity and demand spikes when businesses restart export activity.
This creates a ripple effect across global supply chains, impacting both short-term deliveries and long-term planning for businesses that rely on manufacturing in China.
Navigating Supply Chain ET2C’s Proactive Approach
At ET2C, we are working closely with our partners on the ground in China to obtain live, reliable updates regarding factory activity, port operations, and transportation availability. Our goal is to give our clients accurate, timely information that enables them to make informed decisions for their supply chains.
Key steps we are taking:
- Continuous monitoring of local government guidance, travel restrictions, and port operations.
- Direct communication with suppliers and factories to understand real-time production status.
- Scenario planning and contingency mapping to help clients anticipate possible outcomes.
- Prioritization of urgent shipments to minimize disruption where possible.
Navigating Supply Chain Supporting Our Clients
We recognize the uncertainty this outbreak has created for businesses worldwide. To support our clients during this period, ET2C is:
- Assessing all open orders and pending shipments to identify potential delays.
- Engaging with clients on individual contingency plans, tailored to their business needs.
- Exploring alternative sourcing regions where possible to mitigate risks.
- Providing updates via multiple channels including our website, email newsletters, social media, and direct account manager communication.
Navigating Supply Chain Looking Ahead
The global supply chain is resilient, but the Novel Coronavirus presents unique challenges that require flexibility, foresight, and a coordinated response. While the immediate weeks ahead will likely bring disruption, we are confident that through proactive planning and strong collaboration with our clients, ET2C can minimize the impact on business operations.
We remain committed to protecting our clients’ supply chains, supporting our partners in China, and safeguarding the health and safety of our own staff worldwide.
Contact Us
If you have any specific enquiries or concerns, please reach out directly to your ET2C account manager. Alternatively, you can contact us at contact@et2cint.com for assistance.
