IMPORTANT NOTICE TO ALL CUSTOMERS
Reports coming in indicate we are none the wiser as to when we will see an end to disruption of supply chains both in China and the rest of the world. Which have put more pressure on the global medical community to find a way to curb the spread as well as the international trading community on how they manage what is now becoming a harsh reality of what is to come;
- Northern Italy / South Korea – Outbreaks are now becoming more widespread across the globe in particular Northern Italy, South Korea and Iran.
- Shelf stock will continue to diminish – Industry sources suggest shelf stocks will start to dwindle. Commentary from importers indicated a shelf stock of 3 – 4 weeks of products from car parts to household goods.
- Alternative supplies will become exhausted and more expensive – Import Industry has advised they have for some weeks now been looking to source stock from other sources / countries, however, as this is a global issue other parts of the world are doing the same and as such, there are simply not enough sources to fully supply the orders globally.
- Lack of container movements create surpluses and shortages – if full containers are not moving into countries then those countries have no empty containers to export their goods back to their offshore clients. This has the potential to increase costs due to the expense in relocating empties and higher prices due to minimal stocks.
- Increased transport prices, be it air or sea, will be something that we will all have to address in the months after normality returns to the China economy. The issue that we continue to hear from industry participants is that this “normality” is getting further away, some saying September.
- Airfreight Capacity. Due to the restriction in passenger movements, carriers have reduced cargo options as follow:
– Ex- Shanghai to Australia, passenger flights via MU, CZ, D7, MH and Freighter flight options via CX, SQ.
Estimate airlines will reduce by approx. 40% cargo capacity in March.
– Ex Guangzhou to Australia, passenger flight options via CZ, MH and JL.
Estimate airlines will reduce by approx. 30% cargo capacity in March.
- General Update – China, Transport to and from China continues to be restricted, shortage of staff in the supply chain sector driven by both the inability of workers to get back to their home provinces due to internal travel restrictions aligned with their personal concerns.
ADM Global shall continue to advise customers on pertinent updates as they come to hand.
In the meantime, should you require further assistance,
please do not hesitate to contact your Account Manager at ADM Global.
Yours faithfully,
ADM Global Pty Ltd
