Further to previous statements provided here, we would like to update you accordingly on the following:
For the past 14 days, the delivery situation has changed only slightly. The positive trend in Asia continues, as more and more production facilities resume their work. However, it will still take some time before normal production levels are reached.
Additionally, the increased demand is currently exceeding the capacities of many production facilities. To avoid any inconvenience, we therefore recommend that our customers work with longer planning periods.
Capacities in transport and logistics are also still limited.
Please be assured we are continuing to work with the entire supply chain to minimise any impact to our customers.
Since the beginning of March, Chinese authorities have been reporting a continuous decline in the coronavirus infections. Many production facilities in the country have therefore resumed their work. However, it will take some time before normal production level is reached. The situation is that production facilities have accumulated orders during the period of forced closures, which also then has an influence on production output. However, despite declining infection rates, numerous workers are still affected by quarantine measures. Raw materials are also in short supply in some production facilities. As a result, some production lead times have had to be increased accordingly.
While the situation in the Asian production facilities is easing a little, the corona virus has reached Europe and the USA. It can be assumed that the border closures for passenger traffic decided on in the USA and in numerous European countries will also have a major impact on freight traffic, especially the airfreight sector.
Freight forwarders like UPS and FedEx who use their own planes are not affected by this as of yet, but this can change at any moment. However, airfreight carriers using cargo space on passenger planes might be affected by the actual situation, as the capacity is far less than usual.
Due to these problems, delivery delays are unfortunately still to be expected. We are doing our utmost to supply all our customers with the desired goods as quickly as possible under the circumstances described, and are monitoring further international developments very closely.
In the coming weeks we will inform you regularly about the latest developments here.
On February 10th, the mandatory leave decided by the Chinese government ended and some production facilities have resumed their work. In other cases, however, Chinese authorities initially extended the mandatory leave until February 17th.
When a factory may reopen is solely at the discretion of the Chinese authorities. Permission to reopen is subject to strict hygiene and safety requirements.
As transport routes, customs, airports and airlines are still affected, we expect delivery bottlenecks for some of our products.
We want to overcome these bottlenecks as quickly as possible and are in close contact with our colleagues in Asia. However, we are not able to foresee, nor can we influence, how the international situation regarding the coronavirus will develop at the present time.
On January 9th this year, the World Health Organization reported for the first time about the Coronavirus. Since then, it has always been in the daily news. Governments are globally reacting on the outbreak and are scaling up their vigilance to get the situation under control.
In China, where the first contamination has been reported, mandatory leave until 9th of February has been ordered in many districts, i.e. Shanghai. This means that factories in these areas will be closed or operate at extremely limited capacity, resulting in a delay of supply or possibly no supply of any products for several weeks.
Jauch’s supply chain and production facilities are partly affected by this situation. Although Jauch has Disaster Recovery Plans, they do not apply in this particular situation, that affects China as a whole. Uncertainty is especially caused by the infrastructural situation, as more and more international airlines, e.g. Lufthansa and British Airways, have already been cancelling all their flights to China. The further evolvement of this situation cannot be foreseen at the moment.
Our goal is for our business to continue as smoothly and with as few changes as possible, whilst recognizing that the spread of the virus will have certain effects. Therefore, we are regularly monitoring the latest updates on the virus as well as reviewing the measures taken by the various governments.