Supply chains are facing the impact of the lockdowns due to Corona virus

Freight carriers are struggling to ship cargo by road, sea or air as the Corona virus pandemic forces Western governments to quarantine and threaten the supply of important products. These include pharmaceuticals in the most affected areas, like Italy.

While China is taking draconian steps to halt the spread of the virus, it is now allowing its economy to recover at a slow pace online, supply chains in elsewhere in the world are having to make backup plans.

Problems from finding enough truck drivers to restrictions on seafarers and the lack of responsiveness of air transport are affecting the normal flow of goods, cargo logistics operators said.

Stockpiling and collecting goods in consumer panic are also becoming more stressful. "The supply chain disruption has moved rapidly from east to west," said Mohammed Esa, European trade manager, global logistics group Agility.

Freight-related companies say the impact is becoming the most difficult in air transport as many airlines close services, adding to the difficulty of transporting important cargo such as drugs. yeast and perishable food.

"If you can usually travel for two or three days now it will take twice as long - you still have to get it out of the airport, you put it on a truck and take it across the border," Esa said.

A European supplier of pharmaceutical ingredients, which declined to name, said the business was struggling to meet its aircraft transportation needs.

The decision to ban foreign travelers has also cut U.S. air transportation capacity by about 85%, as a large amount of cargo has been carried on passenger aircraft currently waiting. That has pushed transportation costs up to five-fold because the space on the remaining shipments is scarce, the companies directly involved said.

Goods from Europe are being re-routed through locations like Mexico and Canada to reach the United States, the companies said, but that takes more time and costs.

"We have seen the cost for direct services from Europe to the United States today is between 5 and 10 euros per kilogram compared to less than 1 euro under normal conditions," said Jochen Freese, commercial director of Hellmann Worldwide Logistics, based in Germany, said.

"It's a very strong price increase and I'm sure some people will no longer ship by air now and move towards sea freight due to cost issues. As a logistics provider, we cannot stand the cost difference.

" Traffic across the land border is also slowing, especially to and from European countries most affected by viruses, such as Italy.

"The transportation industry is struggling to find drivers who are ready to drive into Italy and collect goods. It is also difficult to receive goods, because there are no employees in the factories to deliver the goods," Mr. Freese said.

"We have seen an increase in the cost of cargo risk, which means a higher pay for drivers to ensure adequate transport capacity. I am sure we will see these costs increase."

" Highlighting some practical challenges, the Spanish truck driver - Oscar Prieto - said drivers had difficulty getting food and using the toilet or shower on the road because of the station. Service doesn't want to serve them. When they arrive at the warehouse or factory, they are also not allowed to deliver goods but have to wait outside while paperwork is done.

"In some places they treat truckers like dogs," said the 48-year-old man, who has worked for more than two decades as a freight carrier.

BORDER ISSUES

Guido Nicolini, president of Confetra's transport and logistics federation, said its members had problems on some frontiers, such as Austria, because border control has slowed traffic and in some countries. , drivers are only allowed to enter for a limited period of time.

"We may face new problems due to unilateral actions of some countries, which could eventually lead to a shortage of supply," said Nicolini.

While truck drivers in Spain are managing to deliver goods such as food and medicine, there are more people queuing at border gates, Dulse Diaz, spokesman for the Transport Federation. Spanish chemistry said.

"Perhaps the most worrying problem is that we do not have enough masks and gloves for all drivers. Although many businesses have anticipated this situation and ordered, all production is currently underway. is for hospitals, "he said.

Luis Marin, manager at Asociafruit, representing producers and exporters of fruits, vegetables, flowers and plants in the southern Andalusia region of southern Spain, said carriers pushed costs to farmers in Shipments are shipped.

"Usually we send a truck to Germany and the truck driver comes back with another cargo from inland to make up for the return cost," Marin said. "But production in many fields is completely depleted. So there is no return. If manufacturers have to pay for a two-way journey, the cost will increase."

Patrick Hasani, HR director of UK freight forwarder Zencargo, said the UK's stockpile of goods is in need of 35% more capacity for deliveries from the European Union. Europe to meet demand.

"Transit time is also affected, with an additional one-day delay from products from Poland, Germany and France interrupting traffic due to driver health and controlled goods at the border, Hasani said.

In terms of ocean freight, there is a shortage of containers - a shortage of tens of thousands of containers in Europe and the United States - when shipping lines face the need to send enough equipment after a disruption due to China's closure. . The lack of crew members for ships is also affecting the maritime supply chain.

Guy Platten, general secretary of the International Transport Association, representing more than 80% of the global fleet, said ships attempting to enter ports around the world have been denied entry, while sailors are currently Trapped on board unable to return home due to difficulty in changing sailors.

"Limiting travel, closing borders, canceling air travel and port quarantine ports for 14 days or more is common," Platten said. "We cannot ignore the fact that without the sailors controlling our ships, trade would cease. This means that food, medicine and goods will no longer arrive at the port and People will be directly affected. "

Phaata (Source: Maritime Logistics Professional)

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