COVID-19 and Supply Chain Implications for Ocean Shipping

Only 10 days ago, reports indicated that China cargoes were returning to pre-coronavirus levels, and there appeared to be light at the end of the tunnel. Today, however, a barrage of new headlines has underscored the impact on the rapidly changing global supply chain, including in the United States. In addition to the aggressive spread of the novel coronavirus (COVID-19), new economic developments indicate a decreased trend in global manufacturing. Changes in local economies negatively impacting employees reflect corresponding changes in consumer buying patterns. Finally, fast-changing global political responses to address the spread of COVID-19 have compounded to impact the supply chain. Taken together, these factors make it clear that this is not solely an Asia issue. There has been and will continue to be substantial impact on the international supply chain. Informed and calculated preparation will be required by international trade participants, notwithstanding the apparent reawakening of China’s manufacturing industry.

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