3PL Industry Keeping a Close Eye on Coronavirus Outbreak
The devasting outbreak of the coronavirus in China has already claimed more than 420 lives, most of which are Chinese nationals, but as the virus spreads throughout the region and globally, nations are preparing for the worst. There have already been 11 confirmed cases in the United States. This has led to increased travel restrictions between the U.S. and China, and could potentially have major impacts on the free-flowing movement of goods between the two nations (and logistics companies).
3PLs and manufacturers who are obviously dependent on China’s large economy are keeping a close eye on the situation as it continues to develop. China’s economy, which is the second largest in the world, currently remains on lockdown, with factories in 14 different provinces (representing more than 70% of China’s GDP and 80% of its exports) remaining closed until at least next Monday. Given that that virus is still spreading, albeit at a slower rate in recent days, some remain skeptical as to whether manufacturing will return to normal on Monday.
Additionally, large numbers of migrant workers are trapped in parts of China that are under an official quarantine, covering more than 60 million people, while many others are trapped in areas unofficially closed off by local officials.
Larry Kudlow, President Trump’s Economic Advisor, recently stated “the deadly Chinese coronavirus outbreak will delay a surge in exports that is expected to flow from the first phase of the U.S. – China trade deal signed last month.” Recently the World Health Organization declared the outbreak a “global health emergency,” and it will absolutely have an impact on global markets and geopolitics.
TIA will continue to monitor the situation in China and report as necessary. If you have any questions, please contact TIA Advocacy (firstname.lastname@example.org, 703.299.5700).