This note is to advise you of the actions that we are taking in relation to the virus in Hubei province in China to assess any Supply Chain impact. The Chinese Government has as a precaution extended the Chinese New Year holiday period until the 10th of February as part of their virus control plan.
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BIAFD Update: Chinese factories beginning return to work
Reported operating levels in some larger plants are around the 80% mark, with more workers expected to return. Some factories say they are back to full strength, others significantly lower with some not expected to return for at least a few more days.
Delays in reopening may relate to whether companies are able to demonstrate compliance with local government requirements, which include reporting worker identities, residence and health, as well as instituting hygiene measures, health monitoring and reporting.
Official figures on the 2019-nCoV outbreak show the number of new confirmed cases in China has fallen in recent days although the death toll has now topped 1000. There are, however, continued questions about the accuracy of official numbers compared with the reality on the ground.
Reuters and others continue to report difficulties with road freight, with drivers unable to leave/enter cities and the number of available drivers still curtailed by those unable to travel back to work. Cross national border traffic is severely restricted with reports this is limiting the flow of materials from China into Vietnam particularly.
Container shipping lines have voided sailings from Chinese ports over the last week in response to low traffic volumes. As factories return to production capacity is likely to come under serious pressure, with probable delays for some, most likely lower profitability, containers.
Chinese ports are reported operational over the last week, although traffic has clearly been curtailed, and there are still some reports of worker shortages.