Manufacturers entangled in logistical nightmare as virus-hit China limps back to work

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Manufacturers entangled in logistical nightmare as virus-hit China limps back to work
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Blocked highways. Stranded workers. Dwindling supplies. Shipping and air freight...

) have had to suspend some production - not just in China but also at home - for lack of parts.

“They couldn’t produce because raw materials weren’t being sent from China,” said Pairote Panthakarn from the government’s welfare and labor protection office in Kanchanaburi province, where the factory is located. Sica New Materials did not respond to a request for comment. Nearly half of 109 U.S. companies responding to a poll by Shanghai’s American Chamber of Commerce said plant shutdowns have already had an impact on their supply chains, while almost all of the remainder expect an impact within the next month.

“The resumption of motor transport is very slow and curbs production,” said an executive at a steel mill in the eastern province of Shandong, citing insufficient drivers and a plethora of checkpoints slowing down traffic. FedEx Corp told Reuters it was starting to see a slow pick-up in demand and that it was in discussions with many local governments as there were different restrictions in different cities.

Mathieu Montelon, general manager of France’s Bigben Interactive, which makes smartphone accessories in the southeast province of Guangdong, said the disruptions underscored the complexity of inter-connected supply chains.

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