The Uniserve global team are closely monitoring the market as the spread of COVID-19 changes the dynamics of the Global Supply Chain. The COVID-19 epidemic spread in China appears to have stabilised yet the balance of the risk has taken an unexpected turn following yesterdays’ outbreak across Italy and onwards to other countries today.  

Production & Manufacturing in China:
The Chinese Government has stated that the epidemic spread within the borders of China is now under control to the point that much of the country is able to return to work.

A variety of factory production schedules for resuming normal operations have been released across China, most of which predict a return by the 1st of March. Working closely with our partners in China, we anticipate that production will return to 98% capacity by week 11, meaning products are likely to be in full production flow across many cities, ready for shipment.

Freight Transportation from China:
Congestion is to be expected across China, with containment measures lifted at a slower pace for trucking, air and ocean employees. An average of 25,000 flights have been cancelled per week so far, reducing air freight capacity by 50%. Flight schedules in and out of the country remain capped with cancellations leading up to the end of March. Trucking availability has reduced to an average of 40% due to the self-quarantine precautions implied by authorities on workers who travel across provinces. Extensive blank sailing programmes have been announced as a result of the stagnation, leading to multiple cancellations of trans-pacific sailings in March.

Providing that the epidemic remains capped within the borders of China, it is predicted that the crisis will affect supply chains at least up until April. 

Logistics across the world:
The global supply chain is potentially facing a new set of challenges as the virus affects other parts of the world. Should  the epidemic spread continue in its current pace across Europe and the rest of the world, demand as well as the status of global logistical services are likely to systematically change as they become affected by the containment measures adopted by countries who begin to fight the epidemic in its tracks. Our dedicated team will continue to monitor the situation obtaining first-hand updates from our partners across the globe.  We are collaborating with customers on predicted demand created by order delays and sourcing solutions to support our clients.

If you require any specific updates please do not hesitate to contact the Uniserve Coronavirus Helpline team on 01375 851 346 or by emailing us at info@ugroup.co.uk

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