Extension to Chinese New Year Holiday Impact on Supply Chain

In order to contain the outbreak of the Coronavirus, China has extended its Lunar New Year holiday and ordered businesses to remain shut in several Chinese provinces and cities including Shanghai, Guangdong and Jiangsu, until February 10^th.

In Hubei Province, the outbreak epicentre, businesses will remain shut until February 14^th, a two week extension of the holidays.  In mainland China, businesses re-opened today.

The flow on effect is the potential for disruption to supply chains, especially in the manufacturing sector of Wuhan, which is a major site for information technology products, components and panels made by Taiwanese manufacturers operating there and in China in general.

Order deliveries have been rescheduled in many cases or reallocated to assembly lines outside China for those businesses that have diversified their assembly lines globally.  For example, ABC Taiwan Electronics Corporation that already utilises Malaysia and Taiwan itself, due to the U.S. – China trade war.

In addition, Mongolia has closed its border with China and Hong Kong and Malaysia have announced they are barring entry to visitors from the Hubei Province.

If you think your business may be impacted or if you would like to speak to someone to obtain more information, give the team at Clarke Global Logistics a call on 9854 3000 or send an email to enquiry@clarkglobal.com.au