In the last 3 months, the world has been rocked by the spread of the Coronavirus. As drastic measures are taken globally, there have been major observable effects, especially on supply chains, with imports and exports being directly affected.

Factories in many major Chinese manufacturing sectors had been facing shutdowns or partial slowdowns for weeks as the government sought to slow the spread. Chinese authorities stated that the overall output of industry dropped 13.5% year over year for January and February, marking a tremendous reduction.

This has inevitably led to a reduction in global shipments from China. While the factory slowdowns are coming to an end, the lagging effects at US ports and airports will continue to be felt.  According to the National Retail Federation’s Global Port Tracker, the number of containers arriving in February was down 12.9% percent against last year, and the estimate now is that March will be down 9.5 percent year-over-year.

The airline industry is reeling from the precipitous drop in passengers the world over, both through consumer fear and closed borders. Domestic US flights are even dropping or possibly stopping soon. Freight should still be flying, but it will put a damper on airline companies’ margins and their ability to carry freight along with drops in demand.

Now with the spread in the United States, a wide drop in demand for imports seems inevitable. Obviously there will always be a need an ability for foreign products to enter the USA, but in all likelihood, there will be a drop in the coming months.

JM Rodgers has detailed our plan to work through this crisis, with remote working and designated roles for critical support to ensure our clients are served. We will be ready to work in both logistics, Customs clearance, and duty drawback for all our clients.


James Rodgers CEO

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