Coronavirus affecting supply chains

As you all know, the Chinese authorities have currently tightened safety measures inside the country

31 January 2020 14:14

This happens in an attempt to contain spread of the potentially fatal coronavirus.

National prolongation of the Chinese New Year season

Chinese New Year, which under normal circumstances would last until 30 January, has officially been prolonged until and including 9 February – except for Hong Kong.  When the factories will actually resume production is still uncertain due to an expected quarantine period for the returning factory workers.

The prolongation will affect the entire Chinese supply chain, and we now see many airlines cancelling their flights. Hong Kong is still open, but the majority of the Chinese air routes have been closed. All departures by rail out of the Wuhan province have also been cancelled whereas the rail connection out of Hefei is still open. We have therefore increased our capacity out of Hefei in order to be able to handle the intensified pressure that will inevitably be on this connection.

For goods en route, the CNY prolongation may be a challenge in case documents from the suppliers have not yet been received. We therefore recommend that you take contact as early as possible to prevent delay of release of goods due to missing documents.

How will this affect our clients trading with China?

In reality, nobody knows the extent and the ultimate consequences of the above – not yet - but we will without question soon see a demand for sourcing goods from other markets than the usual suppliers in China. Also, we can expect that exporters will try to find new markets for the goods that would normally go to China.

The entire Blue Water organisation is ready to assist with a new supply chain to and from new locations. We are experts within many other fields than China, and we have a global network that can support our clients with transport of goods by sea, air, road or rail.

We are prepared with innovative transport solutions as well as existing solutions that can be adapted to the client’s needs. We have increased the capacity in order to meet the transport needs that will most likely arise due to this situation.

Whether you are a client of Blue Water or  just looking for a new and innovative approach to solving your transport needs, your local Blue Water office is always at your service.

Find your nearest Blue Water office

31 January 2020 14:14

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