Supply chain disruptions from Coronavirus outbreak

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Global supply chains are bracing themselves for widespread disruption after the outbreak of the Coronavirus in China. The outbreak has seen the Chinese Government extend the Chinese New Year holiday through to February 2nd and in the most affected regions until February 9th to try and reduce the spread of the virus. While many supply chains had prepared for the Chinese New Year holiday, the extended holiday period and consequential factory closures will cause disruptions for many global supply chains.

Other efforts to slow the outbreak of the disease will also affect the logistics of getting premade goods and product parts out of China. Many airlines including United Airlines and British Airways have cancelled flights to and from the country. It is also expected to cause shipping delays with ocean carriers warning that while ports are currently still operational, prolonged delays should be expected.

With the cities most affected by the virus, for example Wuhan, currently being on lockdown and many global supply chains having facilities in these cities, the effects of the Coronavirus outbreak on global supply chains will be seen over the coming weeks.

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