Coronavirus impact stalls imported beef supply chain in China

 

Jon Condon, Beef Central (Australia) 

February 11, 2020

 

AS THE impact of coronavirus continues to spread across China, trade in imported meat and other commodities is coming under increasing pressure.

 

The spread of infection continues exponentially across the country, with more than 43,000 cases now reported, and deaths now well past 1000.

 

The virus and the response delivered by the Chinese Government is disrupting trade, production and supply chains as well as having a significant impact on out-of-home food consumption, with the closure of many food service outlets.

 

Travel restrictions are still expected to keep tens of thousands of workers in their homes even after the extension of the Lunar New Year holiday period by the government ended yesterday.

 

Some Chinese ports are said to have ground to a virtual standstill this past week, as workers are being told to stay at home to avoid spread of infection.

 

Shipping industry reports this week suggest backlogs are greater in some ports than others, with Tianjin, Shanghai and Ningbo the worst affected. Multiple terminals and ports in China are waiving storage fees, which would be the equivalent of demurrage charges, sources say.

 

Refrigerated containers are being discharged in China but few importers are picking them up, with the result that some terminals are running out of reefer plugs to power the refrigeration units. Shanghai and Xingang ports have reported 100 percent utilisation of available reefer plugs.

 

Impact bigger than SARS ...

 

How has imported beef demand been affected? ...

 

Road blocks are causing issues in regional areas ...

 

Conclusion ...

 

China halves tariffs on $75 billion worth of US goods ...

 

more

https://www.beefcentral.com/trade/coronavirus-impact-stalls-imported-beef-supply-chain-in-china/