Tagged "COVID-19"
Network status remains the same with no new closures, 1-week delays for US manufacturers, and China is operating at full capacity.
Expect high rates for air freight and standard rates for ocean freight as both continue to cope with increased demand and availability.
Over 250 factories in the United States have reported status updates to Lumi this week.
US manufacturing
There have been no newly reported factory closures. All manufacturers in the Lumi network are operational. Given demand, plan for delays of up to one week.
China manufacturing
Manufacturers are operating at full capacity and have mostly recovered from the backlog of orders.
Freight
Ocean freight rates fell slightly, but they remain relatively stable due to scheduled cancellations. Some carriers have added vessels to June sailing schedules. It is unclear what impact this will have on rates and availability. Plan for 1-2 week delays until more information is available.
The conversion of passenger jets to air cargo has mostly restored capacity. Air freight rates remain high due to the increased demand, though are leveling out.
Over 260 factories in the United States have reported status updates to Lumi this week.
US manufacturing
The closed manufacturers that were previously reported have reopened and the entire Lumi network is up and running. Though all factories are running at full capacity, you can still expect delays of up to two weeks due to increased demand.
China manufacturing
Production has fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity. Expect production delays of up to one week due to increased demand.
Freight
Ocean freight rates remain unchanged and vessel availability remains limited due to scheduled cancellations. Vessel cancellations have been scheduled through June. Plan for 1-2 week delays until then.
Air cargo rates remain high due to the decrease in passenger jet capacity and increase in demand for urgent supplies. Rates are 3-4 times normal levels for this time of year and will likely continue to increase.
Over 180 factories in the United States have reported status updates to Lumi this week.
US manufacturing
Packaging factories remain an essential service and continue to operate at full capacity, with one exception in New York which was first reported in late March. Increased demand could increase lead times by up to 2 weeks.
China manufacturing
Production has almost fully recovered from initial COVID-19 shut downs. All factories surveyed are back at full capacity.
International freight shipping
To control freight rates, ocean carriers have cancelled a record number of sailings. Rates from China to the US remain mostly unchanged, but you should plan for 1-2 week delays due to limited vessel availability.
Air cargo rates remain high due to a decrease in passenger jet capacity and an increase in demand for urgent supplies. Rates are currently 3 to 4 times normal levels for this time of year and will likely continue to increase.
US manufacturing
Over 700 factories in the United States have reported status updates to Lumi this week. Packaging factories have continued to be deemed essential services and are remaining operational. No new closures have been reported. Up to 2 week delays can still be expected for most factories in the US.
The Network Status tracker now features a map that helps you track downtime across states and cities in the United States.
Over 260 factories have reported their status in the last 24 hours. Here are the latest updates.
US manufacturing
Packaging factories reporting across every state have been designated as essential business and are still in operation.
As of this writing, only one factory (in the state of New York) reported as closed until further notice. This is an independent family-owned factory that has been quarantined.
Less than 10% of US factories are reporting lead time increases. These are primarily due to increases in demand rather than decrease in capacity.
China manufacturing
China has continued its gradual recovery. Guidance remains at roughly 1-2 week lead time delays.
Lumi members have asked us if the Defense Production Act could impact their packaging supply chain. Last night we surveyed manufacturers representing over 400 of the top American paper-based packaging factories that could be involved in such an effort.
As of this writing, paper products are considered essential and exempt from workforce reductions including in New York State whose Department of Agriculture states:
Forest products businesses, including those involved in forestry operations, logging, manufacture of lumber and paper products, and the distribution of those products are essential and exempt from the State's guidance for workforce reduction.
If the Defense Production Act is invoked, manufacturers in the Lumi Network anticipate that there is enough capacity available to maintain normal operations.
Some factories that prioritize packaging for essential products are currently experiencing high load. For that reason we continue to recommend placing orders early to mitigate any lead time delays.
Over 2,000 factories received our latest survey, with hundreds of factories reporting so far. Results will be updated throughout the day as more factories report.
US manufacturing
2 factories so far have reported closures or severely limited availability. Both are independent manufacturers in the New York area. This could extended lead times by 3-4 weeks or more. We recommend that companies relying on New York packaging manufacturing contact us to set up load balancing in Lumi to prepare for any further shut downs.
Over 99% of factories across the US are still operating at full capacity, however there is still uncertainty about further shutdowns.
China manufacturing
Companies have asked us about the risk of COVID-19 transmission on packaging, and what they should tell their customers. Here's what we know so far.
Yesterday evening, California issued the “Safer at Home" order, enforcing further restrictions on movements and gatherings of more than 10 people. In the order, Governor Gavin Newsom stated, "The supply chain must continue."
As part of the supply chain, packaging factories are considered essential and are remaining open in California until further notice. We have not been notified of any closures as of this writing.
This order is likely to ripple out to other states. Consider contingencies with factory redundancy across Lumi regions. The Lumi Network covers factories across every US region. We're here to help you set up load balancing or alternate factories.
If your distribution centers have closed and you are unable to receive product, please let us know and we can work with you to find alternative storage.
Contact your Lumi team or create a Project.
