COVID-19: Effects on the Global Supply Chain
Uniserve recently published an infographic clarifying common queries raised by our clients. The visual aid has since been updated providing a broader overview of what to expect once the epidemic ceases. A copy can be downloaded here.
Once COVID-19 is contained, all freight transport modes will see a rapid rise in demand. We anticipate ocean freight demand to resume with no blank sailings. Air freight demand will rise to fulfil and replenish retailers’ low stock in the short term, coupled with a rise in combined ocean & air service.
We may even see a spike in demand for the direct rail service ex China Yiwu via the historic Silk Road route. Devanning in Duisburg for onward delivery via road to the UK.
The various logistic modes are detailed within the below visual.
Global Supply Chains are faced with difficult decisions as operations across mainland China continue to stagnate. Many businesses and factories still remain shut with just 35% in full operation according to Tuesdays’ figures. Others are re-opening at a slower rate to aid containment measures, with 7% of manufacturers partially resuming work with small staff numbers (view graphic here). Logistics too are largely at stand-still as the battle against the epidemic continues.
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