Advisory on Corona Virus outbreak – Trade situation in India

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Dear Network Partners,

 

Some of our partners have asked us about the situation in India with regard to Corona virus outbreak.

 

Please find below an FAQ we have compiled from some basic queries raised by our Network Partners / clients, arising out of Corona virus outbreak in China.

  1. Any staffing issues with WWL India offices? None
  2. Any transportation restrictions for workers and truckers, ocean carriers and airlines? None
  3.  Are factories in India at full working capacity? Yes
  4.   Are there any effects from China on India’s production such as lack of raw material from China?

At the moment, there are very big disruptions in supply chain.  The most affected are Automotive, Electronics and Pharma industries.  As far as automotive industry is concerned, where major raw material supplies for some Tier-1 car manufacturers are coming from China, supply chains are fully disrupted now.  Because of this, we anticipate huge air freights from China to India in the next 5 weeks’ time.

  1.   Are air and ocean services to and from India’s “normal” or space is very tight?

Air and Ocean services to and from India are normal.  However, space situation is very tight with ocean carriers.  We also expect air carriers to increase prices in the next few weeks.

  1.   Do the Indian factories getting more orders recently?

At the moment it is mixed.  We do not have enough information in this regard.  We shall do some research and provide you more info.

  1.   Anything else to share about India we can use to teach our teams and can use as an advantage to increase our cooperation.

While the disaster in China and the loss of human lives are extremely disheartening and hurtful, it is seen as also a possible opening of window for the manufacturing sector in India.  We hear from many of our customers and from the trade that supply chains may shift temporarily to India majorly in the domain of Electronics (mainly Telecom) and automotive industries.  Major demand for supplies is expected from Europe and North America.  This will create a huge demand for space in Air and Ocean carriers.  Since many air carriers and some ocean carriers have temporarily stopped services to China we expect route management and traffic management to change dynamically.  This in turn will have an impact on turnaround time and transit times for different destinations.  We will continue to monitor the situation and provide you more information in the coming days.

This is the situation as of now.  We shall keep you posted about any development(s) in the coming days and weeks.

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