18/3/2020

Dear Valued Client,

As the global Coronavirus/ COVID-19 outbreak continues to evolve and is escalating rapidly we as a global community must do our very best to contain and delay the spread of the COVID-19 virus. There is more than enough coverage in the press around COVID 19 in NZ and around the globe as it’ continues to spread. BRi certainly does not wish to contribute to any hype or speculation around this, rather just highlight the developing issues that will see global supply chains effected as a result.

At present we are seeing the New Zealand and other Foreign Governments rapidly implementing boarder control methods and restrictions around movement in an effort to protect their communities. This has seen some countries effectively offline during Government imposed isolation periods of their populations. In response Shipping Lines and Airlines have been or are currently implementing blank sailing programs, and significantly reduced flight schedules as the demand for these services diminish whilst travel bans apply even as freight demand increases.

China is a highly publicised example of the effect of COVID-19 and its effects on International supply chains, and as such unfortunately makes a good case study to briefly highlight the effects of COVID-19 on supply chains.

Firstly COVID-19 is a human tragedy, that is effecting the health and wellbeing of our global communities, and the spread of the virus will until controlled, create an extreme financial impact in addition to the human cost, and as such we only wish to briefly highlight its effects on the shipping industry around capacity at this point.

• Shipping Liners extend their blank sailing programs beyond their traditional Chinese New Year programs in response to the extended decrease in demand experienced during their COVID-19 closures implemented by the Chinese Government.
• Signs of improvement as most Chinese’s ports are operating at pre COVID-19 levels, but vessel space is at a premium due to ships operating full as business come back online.
• Airfreight is and continues to be hit extremely hard, with Governments globally shutting boarders and with Airliners rapidly withdrawing capacity due to the extreme downturn in passenger volumes. This significantly reduces freight capacity, at a time were demand is extremely high we are seeing/ experiencing space issues with significant price increases as exporters/ importers compete for the reduce space availability.

BRi continues to actively monitor and manage client shipments around space availability, costs and client requirements – As your supply chain partner, we will do everything possible to communicate and forecast the increases carriers are considering implementing as soon as information becomes available, providing our customers with the maximum lead time to manage their future supply chain costs. However, any additional costs from the supply chain disruptions will be passed onto you. 

We thank you for you continued support and time, and if you’ve any quires please feel free to contact your account manager in the first instance

Keep yourselves safe, look out for each other and keep in touch.

Keeping You Informed!

BR International

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