Overhaul’s Response to Global COVID-19

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SUPPLY CHAIN DISRUPTION INTEL BRIEF

Let Overhaul provide you with the latest information affecting the throughput of cargo during the COVID-19 pandemic. We will strive to keep you updated on all further developments.

FRIDAY, 3/27/20

United States:

  • Supply chain operations throughout the U.S. are functioning, some at a reduced scale. There are no reported closings of freight-related businesses.
  • More non-critical manufacturers in the U.S. are starting to shut down operations as a result of state and local mandates.
  • FMCSA has expanded the list of products covered under the Hours of Service waiver to include raw materials, packaging, and fuel for critical shipments.
  • Freight crossing the U.S./Mexico and U.S./Canada border continues to flow without major delays. The only city reported to be restricting specific cargo movement is New York City.
  • All major truck stop companies are reporting that they are 100% open. Some locations are indicating a reduction in food service options, as they adhere to local requirements. All locations are providing food take-out options.
  • An increase in cargo theft rates is being reported, as criminal groups look to take advantage of disrupted operations.
  • As states start to move towards “Stay at Home”, preparations need to be made for shipments in route that cannot be delivered and will be left stranded.
  • Miami and Los Angeles seaports are reporting reduced operations due to some depots closing. However, all other major U.S. seaports are reporting normal operations.
  • Capacity for sea cargo moving to Asia is severely constrained.
  • Capacity for air cargo moving from the U.S. to Europe and the Middle East is severely constrained.

Global:

  • There are increasing restrictions on some border crossings in Eastern Europe, as more countries implement health checks for drivers.
  • Global sea ports are implementing restrictions for ships that have recently visited countries with high rates of COVID-19.
  • Some states within India have closed their borders for all traffic, including freight. This will force trucks to sit on the side of roads for the entire three-week lockdown.
  • The lockdown of India (including factories) will have effects on global pharmaceutical operations, as India is a large producer of pharmaceutical raw materials.
  • While European freight transportation infrastructure is operational, moderate delays and disruptions in many countries (primarily at the last mile delivery points) are likely.
  • There is concern that the downturn in freight movement across Europe will cause many trucking companies into bankruptcy, as most trucking operators don’t have the financial resources to weather a prolonged disruption.
  • Airports are operating across Europe, but with reduced capacity due to manpower shortages.
  • European border crossings are open. Some are reporting delays as a result of driver health checks.
  • Some European countries have reduced the number of open border crossings.
  • China’s manufacturing and logistics operations are on the rebound and expected to be fully operational by the end of March.

If you have any information related to the disruption of cargo please send to leconnect@over-haul.com.

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