{"id":30214,"date":"2020-04-09T00:00:00","date_gmt":"2020-04-09T00:00:00","guid":{"rendered":"http:\/\/test.tranistics.com\/nvision\/2020\/04\/09\/how-coronavirus-decimated-global-supply-chains-in-under-90-days\/"},"modified":"2026-01-29T09:39:39","modified_gmt":"2026-01-29T09:39:39","slug":"how-coronavirus-decimated-global-supply-chains-in-under-90-days","status":"publish","type":"post","link":"http:\/\/test.tranistics.com\/nvision\/2020\/04\/09\/how-coronavirus-decimated-global-supply-chains-in-under-90-days\/","title":{"rendered":"How Coronavirus Decimated Global Supply Chains in Under 90 Days?"},"content":{"rendered":"

Few things have the devastating potential to disrupt global economies like an unchecked pandemic. Now, we\u2019re in the midst of one. In the span of 90 days, the coronavirus (COVID-19) went from a Chinese epidemic to the catalyst for the global recession, with rippling effects still to follow as the virus spreads. Outside of health complications and social panic, the coronavirus’s significant damage comes from its ability to rapidly cripple supply chains.<\/p>\n

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Axios has reported staggering figures about supply chain disruption in the wake of the coronavirus. Most alarmingly, Coronavirus has disrupted supply chains for nearly 75% of U.S. companies<\/a>. A majority of businesses report doubling lead times on products due to a lack of freight, ocean, and air transport. Even more concerning, 44% of all businesses surveyed by Axios have no plan in place to adapt to supply chain disruptions from China.<\/p>\n

With murky supply chains reporting out of China, the rest of the world has been forced to adapt. Unfortunately, countries are struggling to shift their supply chains at a time when they are facing disruption from the pandemic themselves.<\/p>\n

Unprecedented Disruption and Decoupling<\/h2>\n

Coronavirus is the clear and present catalyst for global supply chain disruption, but it\u2019s by no means the only factor. The U.S.-China trade war that\u2019s raged for the past 18 months has put trade and supply relationships on rocky ground for countries around the globe. That rocky ground dissolved with COVID-19, forcing trade partners to find new channels and suppliers much quicker than they might have otherwise.<\/p>\n

Take a company like Proctor & Gamble (P&G). The blue-chip brand and its subsidiaries face supply chain disruptions from as many as 387 different Chinese suppliers, which could affect the output of more than 17,600 products. Simply finding new suppliers isn\u2019t an option for P&G, as it would mean re-tooling the conglomerate\u2019s entire materials sourcing and production approach. For some industries affected by Coronavirus, like pharmaceuticals, reforming supply chains could be downright impossible.<\/p>\n

Decoupling from China is easier for smaller brands with less diverse product offerings, but even those looking to diversify their supply chains have to contend with the barriers to entry in developing new supply chains. It\u2019s not an easy undertaking amidst a pandemic.<\/p>\n

Borders are Closing; Trade has Plummeted<\/h2>\n

China closed its borders on January 30. Italy shut down the country on March 11, and the U.S. was quick to follow. Wherever the virus spreads, borders eventually close. Canada, the U.K., France, and Germany have all followed in an attempt to quash the virus. And while it\u2019s the best measure for reducing transmission, it\u2019s crippling the economy.<\/p>\n

The rising number of barriers between countries is making it difficult to move goods. Moreover, fewer goods are moving in general due to a global workforce that\u2019s growing sicker by the day. The ripple effects of quarantines, border closures, and more than a million confirmed cases of COVID-19<\/a> have created the need for isolation.<\/p>\n

Coronavirus has affected society at every level, striking a blow at every link of global supply chains. Until the pandemic passes and we\u2019re able to re-forge them stronger, the world will continue to make do with frequent, unforeseen disruptions.<\/p>\n

It seems we\u2019re only at the start of what could be a protracted economic recession, fueled by supply chain disruptions caused by Coronavirus. Now, more than ever, it\u2019s important for freight and logistics companies to tighten their belts, invest in the future, and make smart decisions about how to nimbly maneuver in global markets. nVision Global can help. Visit our website at nvisionglobal.com<\/a> to learn more.<\/div>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":30911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-30214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain"],"_links":{"self":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts\/30214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/comments?post=30214"}],"version-history":[{"count":0,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts\/30214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/media\/30911"}],"wp:attachment":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/media?parent=30214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/categories?post=30214"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/tags?post=30214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}