Issue #7 – April 29.pdf

COVID-19 is causing significant disruptions to the US supply chain, with fears escalating for the US meat supply chain due to plant closures and worker shortages. The White House has invoked the Defense Production Act to keep meat packing facilities open, but tensions are rising between workers, unions, and local governments over safe working conditions. The pork industry is estimating a $5 billion loss in 2020, and food banks are struggling to keep up with increasing demand.

The Chinese economy has shrunk for the first time in 44 years, with a 6.8% contraction in Q1 2020, and the US economy has also contracted, with a 4.8% decline in Q1 2020. The transportation industry is facing significant challenges, with US rail cargo experiencing declines unseen since the Great Recession, and US exports shrinking by 6.7% in March. Despite these challenges, some companies are seeing increases in ecommerce volumes and revenue.

The US Department of Agriculture has announced a $19 billion relief program for farmers, and the United Nations is estimating that the number of people suffering from hunger will double to 265 million due to the pandemic. The American Chamber of Commerce in Shanghai has surveyed senior executives, with 70% expecting supply chain operations in China to return to normal in fewer than 3 months, and 96% forecasting a return to normal within 3-6 months.