As you are aware there is a crisis unfolding in China and surrounding countries such as Hong Kong. The Coronavirus is shutting down China and the repercussions this has for supply chains is substantial.
It is still yet to be determined when factory workers will return to work, and this will most definitely affect production runs and other factory operations.
The backlog of cargo will be substantial and there will likely be blank sailings imposed due to the lack of cargo being able to leave China.
To minimise the impact on your supply chain the AAI team are on hand to assist with capacity management working closely with your suppliers, hauliers and shipping lines.
Furthermore, for airfreight, some airlines have suspended flights to and from China. This will again impact cargo routings and presumably pricing with reduced capacity.
AAI is here to assist you during this tough period. Please liaise with your Account Manager and pass on as much information as possible to ensure we can cater your needs.
It is difficult to pinpoint when this will be under control as there are more and more restrictions being imposed daily.
Please note below facts known so far:
1. Central government of China has extended CNY holiday till 2nd Feb and resume 3rd Feb.
2. Several provinces with more serious situation has announced later resume date as follows:
- Hubei (which includes major cities like Wuhan): No earlier than 24:00 13th Feb
- Shanghai: No earlier than 24:00 9th Feb
- Zhejiang (which includes major cities like Ningbo, Wenzhou, Jiaxing, Hangzhou, etc..): No earlier than 24:00 9th Feb
- Guangdong (which includes major cities like Guangzhou, Shenzhen, Dongguan, Shantou, etc..): No earlier than 24:00 9th Feb
- Shandong (which includes major cities like Qingdao, Jinan, Yantai, etc..): No earlier than 24:00 9th Feb
- Fujian (which includes major cities like Xiamen, Fuzhou, Zhangzhou, etc..): No earlier than 24:00 9th Feb
- Jiangsu (which includes major cities like Suzhou, Lianyungang, Wuxi, Nanjing, etc..): No earlier than 24:00 9th Feb
- Anhui (which includes major cities like Hefei, Wuhu, etc..): No earlier than 24:00 9th Feb
- Yunnan (which includes major cities like Kunming, etc..): No earlier than 24:00 9th Feb
- Chongqing: No earlier than 24:00 9th Feb
3. Some major airlines have already suspended services in/out China for now, including: AC, BA, UA (partial) , AA (partial), CX, AY, LH, AI, etc..
4. No reports yet on suspension on port terminals except Wuhan port.
5. WHO just set China as PHEIC
6. AAIâ€™s team in China will resume work from 3rd Feb however staff will be working remotely (offices will be unmanned) till 9th Feb.
7. Cross province public transport is still suspended in most cities (mostly road transport with coaches)
8. All highway tolls have strict security check with temperature check - road transport will be delayed.
9. Most factories are likely to reopen after 9th Feb but actual production maybe delayed further because most of the factory workers will only return to the factories after 10th Feb.
10. AAI will closely follow and monitor the situation and provide updates as they come to hand.
Should you have any questions or concerns, please do not hesitate to contact a member of the AAI Global team.
We would like to take this opportunity to thank all our highly valued clients for your continued loyalty and support.
The team at AAI Group