The Impact of Coronavirus on the Global Shipment

By: SiliconExpert on April 12th, 2020

Importance of Shipment to Electronic devices:Shipping is a much more involved process than what consumers see when an item lands at their door.Shipping can provide efficient low-cost transportation, and its effective use is important to the economic progress of developing countries, in terms of the economic contribution and growth of their foreign trade, and their domestic production and consumption.Disruption of the shipment process may highly impact deliveries of electronic devices and may disrupt the integration between raw material suppliers and the end manufacturers.

Coronavirus Pushes Shipping Companies into Survival Mode:

In response to the 2019-nCoV Coronavirus outbreak, international shipping services have been interrupted in many countries.

Oceangoing shipping companies are keeping commerce moving around the world as governments try to keep their staggering economies propped up and supplies heading to increasingly strained communities. Yet many operators themselves are going into survival mode, as the coronavirus pandemic takes a toll on trade.

Many transportation operations, including port cargo handlers and trucking companies and railroads that move goods inland, are considered essential businesses in nations that now are locking down the business. However, unlike airlines, which could be set to gain billions of dollars in bailout funds, most shipping companies can’t count on financial relief from governments. As a result, many of the world’s shipping companies are scrambling to adjust to the new world.

There are some disruptions in delivery to customers in quarantine areas due to local route restrictions and government controls:

FedEx:Global work and travel restrictions may affect shipments inbound and outbound to and from impacted areas, as well as shipments moving within those areas. Customers can visit fedex.com or tnt.com to check the status of their shipments.

UPS:UPS operations will continue, with daily collections and deliveries except where constrained by government restrictions.

DHL:Due to the dynamic nature of the COVID-19 pandemic situation, additional localized service adjustments may be in place in some countries.

USPS:The Postal Service has a dedicated Coronavirus Disease 2019 (COVID-19) Command Response leadership team that is focusing on employee and customer safety in conjunction with operational and business continuity during this unprecedented epidemic.

How Can SiliconExpert help you?

Shipment is a strategic process behind any stock of devices, and any disruption in any factor of this process may disrupt integration between manufacturers and distributers, users and manufacturers, suppliers of raw materials and the end manufacturers.

On the other hand, this disruption may increase the lead time of devices and as a direct result may increase the prices of the devices.

SiliconExpert is taking proactive initiatives to monitor the situation. We are actively working with suppliers for any announcements or impact statements regarding the Coronavirus Outbreak, and monitoring the impact on component pricing and lead time to support our customers during the Coronavirus Outbreak.

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References:

https://www.nepia.com/industry-news/coronavirus-outbreak-impact-on-shipping/https://about.usps.com/newsroom/service-alerts/https://www.simplydhl.com/covid-19updateshttps://www.ups.com/assets/resources/media/Global_Novel_Coronavirus_Updates.pdfhttps://www.fedex.com/content/dam/fedex/lac-latin-america/MVP/images/2020/Q3/LAC_EN_2020_2_web_pdf_NA_Customer_Facing_Service_Impact_service_alert_923409606.pdf

April 13, 2020 by Mahmoud Salem