Coronavirus: Impact on Supply Chain

The global supply chain will be adversely affected by the Coronavirus restrictions. Shipping companies and airlines are cancelling services from China and movement within China is extremely restricted. Thus, containers are not moving off dock in China, nor are vessels calling Chinese ports to pick up export containers. This stoppage will have a trickle down effect in all global locations. Wine and spirits production areas rely on the inflow of containers from Asia to provide equipment for exports. As the supply of containers is dramatically reduced in the upcoming weeks, we expect to see equipment shortages and the potential for equipment imbalance surcharges. 

Please be prepared for potential delays in upcoming weeks/months due to potential equipment shortages. Currently, we are also seeing delays from North Europe due to massive storms in the area preventing ships from docking at various ports, and we are still under strike conditions in France.  

On a final note, we do not yet have any news on the next stage of the EU retaliatory tariff situation but expect to have a report from the USTR by February 15. We will keep you closely posted on all of these areas of concern for the industry.

Please feel free to contact WSSA should you need any further information.