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Distributors of sanitary supplies are looking for better direction on where to ship their goods. Several big suppliers say their inventories of masks, gloves and disinfectant are running low as coronavirus-driven demand increases, the WSJ Logistics Report’s Jennifer Smith writes, and some are restricting shipments and fending off speculative buyers to keep their warehouses stocked. The stresses among industrial wholesalers are part of the broader strain that the pandemic has unleashed on certain supply chains. Demand for gear that offers protection has surged at overburdened hospitals just as more workers, including police officers, truck drivers and supermarket clerks, are clamoring for masks and other supplies. Some believe the federal government could help better allocate supplies if it served as the central purchasing agent, but the White House is resisting that move. Meanwhile, some big industrial suppliers of N95 masks say they have already run out of them.
SUPPLY CHAIN STRATEGIES
American manufacturers are trying to ramp up production of medical gear against overwhelming demand.
3M Co.
and a half-dozen smaller competitors are making about 50 million of the high-quality N95 masks in the U.S., the WSJ’s Austen Hufford writes, but they are far from meeting demand that may exceed 300 million of the protective devices each month. The effort is part of a rush to get the country’s manufacturing supply chains turned toward the ventilators, masks and other equipment needed under the spreading coronavirus pandemic. Stocks are depleted for a range of gear, and U.S. hospitals have been pressed for equipment since many countries that had supplied medical devices blocked exports to fight the virus within their own borders. U.S. ventilator stockpiles are running dangerously low and President Trump triggered a federal emergency law to help domestic manufacturers get the parts they need to make those devices.
TRANSPORTATION
An air cargo showdown is brewing between the U.S. and China over Beijing’s stricter coronavirus restrictions. China has imposed tougher testing procedures and officials have told cargo airlines their crews will have to undergo lengthy quarantines after entering the country. The actions have roiled
FedEx Corp.
and
operations, the WSJ’s Kate O’Keeffe, Ted Mann and Paul Ziobro report, while rattling flight crews, disrupting shipments and prompting calls for help to the White House and other U.S. officials. The uproar comes amid broader questions over coronavirus screening for crews in both air and ocean operations. Oceangoing carriers have said varying procedures around the world have complicated staffing and undercut attempts to get some crew members home. UPS says its service has been unaffected, but FedEx says changes in crew-testing procedures recently forced it to suspend some flights out of Guangzhou, China, for 24 hours.
QUOTABLE
“
We used to ship containers to customers. Now we are shipping by pallets.
”
Number of the Day
25.4%
Decline in loads posted to the truckload spot market the week ending March 29 from the week before, according to DAT Solutions LLC.
IN OTHER NEWS
A record 6.6 million Americans applied for first-time unemployment benefits last week in a free-falling U.S. labor market. (WSJ)
Crude prices soared at record rates on hopes for the end of a global oil-price war. (WSJ)
New home sales listings in major U.S. cities are plummeting. (WSJ)
has filled 80,000 jobs in recent weeks, part of a hiring spree to add 100,000 workers to meet soaring demand. (WSJ)
is furloughing half of the U.S. manufacturing workers in its jet-engine business for four weeks. (WSJ)
Instacart will distribute masks, sanitizers and thermometers for its workers as a result of the heightened threats they face from the coronavirus pandemic. (WSJ)
Sales at
U.S. stores sales fell sharply in the final week of March, offsetting gains from an earlier surge in demand. (WSJ)
Some auto-parts suppliers are showing signs of distress as assembly plants shut down. (WSJ)
will furlough more than 30,000 cabin crew and ground staff. (WSJ)
Chinese upstart Luckin Coffee says employees fabricated much of its reported sales in 2019. (WSJ)
Food banks are reporting unprecedented demand across the U.S. as millions lose jobs. (The Guardian)
Japan’s big car makers are halting or scaling back domestic production to conserve cash. (Nikkei Asian Review)
Workers at a
Walmart Inc.
Pennsylvania distribution center say at least nine employees there have tested positive for coronavirus. (Lehigh Valley Live)
A handful of apparel retailers are accepting goods from Bangladeshi suppliers while a large number cancel their orders. (Sourcing Journal)
Canada denied entry at the Port of Halifax to a car carrier from Germany because a crew member was suspected of having coronavirus. (Splash 247)
ABOUT US
Paul Page is editor of WSJ Logistics Report. Follow the WSJ Logistics Report team: @PaulPage, @jensmithWSJ and @CostasParis. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at [email protected]
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