February 11, 2020

The Coronavirus outbreak: Potential strain on imports and exports to and from China

The New Coronavirus Pneumonia has proliferated in China, and multiple locations have confirmed cases. The Chinese government, as well as the Health authorities government, have all announced the extension of the Spring Festival holiday to maintain people at home to contain the ongoing coronavirus epidemic.

Further to the outbreak of the new virus in Wuhan, the team at Crane Worldwide Logistics received notification that several airlines are extending the Chinese New Year holidays and resume normal operations on February 10th. It is crucial to highlight that customs operations in Shanghai will also go back to a regular schedule on the same date. 

Speculation continues as to how the Coronavirus will impact supply chains around the world, as several multinational manufacturers have already reported that they are bracing for inventory disruptions. These assumptions come as a consequence of recent news highlighting that several carriers suspended both flights and trucking into and out of the Wuhan province.

The Coronavirus, as expected, is continuing to create supply chain challenges as workers return to work after the Lunar New Year celebrations come to an end.
Currently, transport companies are facing a severe shortage of drivers returning to work. The drivers that have returned from leave, are facing a quarantine period of 14 days, local council registration and declaration is required. 

Priority is being given to cargo that include perishables and refrigerated goods as well as medical supplies such as face masks and sanitization supplies.
Transportation companies are limited to travel within their own provincial territory, we are seeing restrictions particularly in major cities and surrounding areas. In addition, truckers are required to provide identity cards and license plate registration numbers to limit movement across the provinces.

Currently, cross province trucking delivery requests must be checked and confirmed by the transportation company as some areas are still permitting cross province trucking. However, this is limited and updates coming in from China show that these permissions are changing rapidly.

Crane Worldwide is working on alternative solutions with our partners including domestic rail services that could be a foreseeable transportation method to tackle the driver shortage.

Our team continues to monitor the situation and are available for advice and consultation to minimize any supply chain disruption you may be facing at this time. Reach out if we can be of assistance and check back for more updates.