Crux Systems Insights

How coronavirus is disrupting the supply chain

February 5, 2020 by Kathleen Kong |

Logistics, News

Since the coronavirus outbreak in China has spread to other countries, we’ve heard a lot of rumors and fears worldwide. Although the World Health Organization has said there is no reason to slow down international travel and trade, we’re starting to see an impact on supply chains.

Let’s take a look at the timeline of key events related to the outbreak:

  • On January 23, the government of Wuhan declared a quarantine of the city.
  • The Chinese government extended the Chinese New Year holiday from January 30 to February 2 for most cities, while Shanghai extended the holiday to February 9.
  • On January 30, the WHO declared a global emergency as the coronavirus spread worldwide. The first case of human-to-human transmission in the US was confirmed.
  • The US imposed entry restrictions on foreign nationals and quarantines on Americans returning from Hubei, the center of the coronavirus outbreak.
  • On January 31, Delta, American and United airlines announced they will temporarily cancel all of their mainland China flights.

To prevent the spread of the virus, learn about the symptoms and follow doctor’s instructions to isolate the virus. On the business side, here are some of the impacts on logistics.

Companies that rely on manufacturing from facilities in Wuhan are considering alternative suppliers as facilities in the region face potential production delays. The regional lockdown has already impacted logistics operations that rely on highways to carry goods into and out of the region.

Heavy port congestion along the Yangtze River near Wuhan is causing disruptions and delays, and a lack of drivers and other workers is slowing turnaround times. Check your dashboard for the latest information on the expected ETAs for your shipments from China.

To learn more about the economic influence on the supply chain from the coronavirus outbreak, join Flexport’s webinar to learn how companies can adapt to the potential impacts.