Manufacturers Who Cut Inventories And Profit Margins To The Bone Are The Most Vulnerable To The Current Crisis
In order for western manufacturers to remain competitive, many components are sourced from China. When China delays manufacturing, western manufacturers’ ability to finish their products and deliver them to market is impeded. To compound that problem, inventories are typically stockpiled for just 15-30 days due to cost-saving inventory management methods such as “just in time delivery”. That spells double trouble for manufacturers and consumers alike.
Read more about how the current crisis is impacting global supply chains at:
(Photo credit: Julius Silver)
Trade Continues Despite US Border Closures with Canada and Mexico
Recent announcements of US border closures with Canada and Mexico state that the borders remain open for trade. Canada’s Transport Minister Marc Garneau explained that truck drivers, train and airline crews are exempt from the restrictions.
Read more about the border closures at: https://www.ttnews.com/articles/us-canada-agree-close-border-remain-open-trade
(Photo credit:Trucks on the road. (John Sommers II for Transport Topics)
Passenger Travel Ban From Europe Causes Severe Disruption Of Air Freight Industry
Some US importers are unaware that the travel ban for passenger flights from Europe will impact their air cargo shipments. The reality is that over 60% of air cargo is carried by passenger aircraft. As a result of the travel ban from Europe to the US, shippers are competing for space on a handful of freighter aircraft, pushing up rates, delaying cargo and diverting traffic through non-European airlines.