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Covid-19 update Wednesday April 1st

Good morning from the UK. It’s Wednesday 1st April.
Traditionally the arrival of April fools day generates a day of mirth with news outlets and corporations around the world attempting to outdo each other with hard to believe stories or wacky new product announcements. This year’s April fools day seems to have been cancelled in most parts of the world by general consent (even Google has opted out) but in some parts of the world countries are making it very clear they have no tolerance for Covid-19 related april fools jokes. Thailand is threatening up to 5 years in jail for Covid-19 related April Fools jokes, Taiwan is offering up to three years in jail and/or a fine of up to NT$3 million (US$99,200) and authorities in both India and Germany have also said they will not tolerate it either (link).

Virus statistics

See reply to this post, you can't miss it, it's the one lots of tables.

Virus news in depth

US Navy captain’s dramatic plea to evacuate coronavirus-ravaged aircraft carrier Theodore Roosevelt - the SCMP is reporting that Captain Brett Crozier has pleaded to disembark all sailors from the aircraft carrier onto land at Guam (where it’s currently docked). “We are not at war. Sailors do not need to die,” Crozier wrote. 4,000 sailors are on the vessel; the latest infection count has jumped to 100. Defence Secretary Mark Esper on Tuesday ruled out evacuating the ship, whose plight bears similarities to that on civilian cruise ships where the Covid-19 illness spread. Today’s CNN live blog (link further below) says that Guam’s governor is willing to let them stay in hotel rooms provided they isolate for 14 days.

Coronavirus: from China to the US, consumer behaviour radically altered as world retreats into ‘survival mode’ - The SCMP reports that amid mounting uncertainty, the coronavirus pandemic – which has claimed the lives of more than 41,000 people and infected at least 842,000 worldwide – is fundamentally changing consumer behaviour in Asia, Europe and North America. Consumer experts said the 2009 global financial crisis, the Great Depression that started in 1929 and the September 11 terrorist attacks give some clues about how and when global consumption might recover. But the complexity of this crisis, the number of variables and its magnitude make this consumer recovery unprecedented and difficult to predict, they added. “The coronavirus pandemic has completely changed patterns of consumer behaviour all over the world. People are afraid, and when people are afraid, they go into survival mode,” said Jesse Garcia, a Los Angeles-based consumer psychologist, who is also the CEO of market consulting firm My Marketing Auditors.

How China’s consumer companies managed through the Covid-19 crisis - The strategy consultancy McKinsey reports some useful survival tips from Chinese companies that are now reaching the end of the first Pandemic outbreak wave. “The biggest difference is in the mentality of the organisation, which shifted from being unsettled, to one of confidence after our response became clear, and people came to terms with ex-office work routines. Once the situation was under control, we shifted to strategic planning; looking at ordering remotely for the next season. We also began to work on revised three-year plans that included much more aggressive omnichannel targets, transforming our supply chain to be more agile and other strategic moves to grow the business” said Feng Hua Song, vice president of Erdos Group and one of the top-level executives participating in the roundtable discussion.

ER doctor in New York details dire supply shortages from the front lines of the coronavirus fight - CNN has a report on a per diem doctor who’s been working in multiple hospitals in New York City. "We don't have enough N95 masks. Some have run out completely. Some don't even have gowns," he said. "You can put me in the exact same ER and I would witness the exact same evolution of chaos." In another diary entry he wrote "Today was just a sign that things are getting worse and worse. I had about three deaths in the span of the first six hours, he said. "One was truly sad. (He) waited a few days for a bed, and it was too full upstairs so he stayed in the ER, and from Covid-19, he just lost his pulses. We worked on him for an hour, and then he died." He is using a ski jacket and ski googles as his own PPE because there are no alternatives.

Virus news in brief

Source today: CNN live blog or The Guardian live blog. Alternative sources linked below.
  • China is getting mixed results in trying to open up its economy again with some places getting flare ups and having to shut again almost immediately (Guardian story)

  • Hong Kong has ordered the closure of all beauty parlors, clubhouses, nightclubs, karaoke rooms and mahjong centers from Wednesday as the city steps up measures to combat a second wave of coronavirus cases. (CNN)

  • Taiwan's economic stimulus plan to tackle the coronavirus outbreak could reach as much as $35 billion, President Tsai Ing-wen announced. Taiwan will be donating 10 million face masks to countries most in need. (CNN)

  • Cuban officials announced Tuesday the country will suspend all international commercial flights to help combat the spread of coronavirus across the island. Foreign ships will also be required to leave the country. Cuba has recorded 186 cases of the novel coronavirus, with six deaths, according to Johns Hopkins University. The additional measures come one week after Cuba implemented a 30-day lockdown, restricting tourists and setting up strict quarantine measures for citizens returning to the country.

  • Flattening the curve - National Geographic has an interesting article about how the world flattened the curve during the 1918 Spanish flu outbreak (link)

  • The UK will open the doors this week on what could soon be the biggest intensive care unit in the country -- and it was built in about a week. As the number of Covid-19 cases in the UK began to rise, the National Health Service (NHS) realized it might be short many thousands of ICU beds. It hopes the solution is at a massive convention space in London’s East End. The coronavirus field hospital will be called NHS Nightingale, after the pioneering nurse Florence Nightingale. When fully running, it will have 4,000 beds.

  • The UK government is aiming to test 25,000 a day for Covid-19 within a fortnight, housing minister Robert Jenrick has said. Downing Street is facing mounting criticism over a perceived lack of testing compared with other nations, with only 143,186 carried out to date. By comparison, Germany is testing 70,000 a day (Guardian).

  • Andy Slavitt’s daily twitter thread is out. The TLDR: 1) Trump yesterday at his news conference for the 1st time began to talk about 100,000 to 200,000 casualties. He mentioned that the number without action would be 2.2 million. 60,000 Americans died in Vietnam, 620,000 in the Civil War and 1.2 million in all American wars. 2) If you listen closely, you will hear Trump say 100,000 is the number and you will hear Birx and Fauci say 100,000 to 200,000 if we are lucky. 3) Numbers floating around the White House are 400,000 and some think that requires some optimism (Personal note: for comparison, 400k = the population of New Orleans or roughly half of San Francisco).

  • The coronavirus pandemic has dramatically cut operations at Atlanta's Hartsfield-Jackson International Airport (the worlds busiest passenger airport) by 60%, according to an airport official. In the past 10 days, operations -- categorized by officials as the combination of departures and arrivals -- were down from 2,700 on average to 1,100 on Monday.

  • The Illinois Governor is frustrated: "I'm purchasing every ventilator that I can find," Pritzker said. "But we're buying them in 100 lots and 200 lots, frankly, I'm taking them 50, 20, 10, wherever I can get them." "We are going to run out of ventilators and the federal government really isn't helping at all," Pritzker said (CNN).

  • Wyoming is now the only US state left that is yet to report a Coronavirus related death (CNN).

  • The US Kroger supermarket chain announced today it would pay staff members who are still working during the coronavirus epidemic a $2 an hour "hero bonus." The extra pay will apply to all hours worked between March 29 to April 18 and will be distributed weekly to ensure staff members have extra cash (CNN).

  • Remember Trump promised Americans a website that will direct them to a nearby Coronavirus testing facility? It turns out the website was being built not by Google but by a company linked to Trump’s son in law. The Atlantic has more.

  • Pentagon has got 2,00 ventilators but has not been told where to send them. CNN has more, the backstory is a bit complicated; the TLDR is Civilian Pentagon officials had repeatedly said they are making ventilators and five million N-95 respirator masks available. So far only 1.5 million masks have been shipped by the Pentagon. Another 500,000 are to be shipped within days but HHS and FEMA have given DoD no indication of when or where they precisely want the other three million items to go. As for the ventilators, an HHS official told CNN that, "many of the DOD ventilators are deployable ventilators and require special training while the ventilators in the HHS Strategic National Stockpile (SNS) are the types of ventilators commonly used by US hospitals and are better suited for immediate use."

  • Governors Fight Back Against Coronavirus Chaos: ‘It’s Like Being on eBay With 50 Other States’ - In New York State — the center of the nation’s outbreak, with at least 1,550 deaths — Gov. Andrew M. Cuomo said on Tuesday that the country’s patchwork approach to the pandemic had made it harder to get desperately needed ventilators. “You now literally will have a company call you up and say, ‘Well, California just outbid you,’” Mr. Cuomo, a Democrat, said in his daily news briefing. “It’s like being on eBay with 50 other states, bidding on a ventilator.” (New York Times article in full, paywall)

  • CNN says that the major cruise ship operator Carnival is asking for a $6bn bailout as the cruise industry grinds to a halt (link)

Supply chain news in depth

Retooling facilities to produce ventilators could strain supply chains, medical device manufacturers warn - The Advanced Medical Technology Association (AdvaMed) says it is wary of invocation in the US of the defence production act which is compelling manufacturers to make medical ventilators according to SupplyChainDive. Their CEO praised the administration on Friday for opening up a "fast track" for automakers and non-medtech manufacturers to repurpose their production facilities to produce ventilators. At the same time, he warned "what we have to make sure of is that as new manufacturers get into the ventilator business they don’t overstress the supply chain" of component parts as well as raw materials. Given the "broad number of component parts that go into a ventilator," Whitaker contends the impact of the DPA could be "crippling." ResMed told MedTech Dive it has serious concerns about such companies pitching in. "We welcome non-ventilator manufacturers' help to build and distribute parts for ventilators, not the ventilators themselves," said a ResMed spokesperson. "Specialized ventilator manufacturers are best positioned to produce effective, clinically tested devices quickly; our top obstacle is the scarcity and increasing cost of ventilator parts. Therefore, non-ventilator makers can help most by making parts, not taking them."

Congestion looms at US ports as shops and factories close and imports pile up - The Loadstar reports that as retail outlets, as well as many manufacturing operations, in North America are shuttered, anticipation of a surge of imports to compensate for China’s extended lunar new year hiatus are quickly disappearing. Instead, as more containers arrive, there are concerns about mounting storage costs. US importers have not wasted time in shifting gear – having tried to speed-up deliveries from China a few weeks ago, they are now in reverse, trying to slow down imports, or cancel them outright. “Importers are cancelling orders left and right,” said Cathy Morrow Roberson, head analyst and founder of Logistics Trends & Insights. Others, she added, were deferring shipments or looking to extend transit times, all in marked contrast to the recent rush to bring in goods from China.

Bangladesh in lockdown as virus halts business and threatens the economy - Bangladesh’s key seaport, Chittagong, is facing heavy congestion in its yard as a government-decreed national holiday restricts the flow of goods. The government has declared a 10-day general holiday between 26 March and 4 April, barred people from going outside from home and halted all types of commercial activities except emergency services. Chittagong is continuing operations amid the virtual lockdown in an attempt to avoid vessel congestion and the creation of a shortage of essential goods in the domestic market. However, Bangladesh Customs is releasing only essential commodities, such as food grains, pharmaceuticals and coronavirus prevention-related materials from the port yard, as only a limited number of its officials are still working.

Forwarders set to hit reverse gear as demand falls and cargo starts to pile up - Forwarders are predicting “mega-congestion” in the next couple of months, as they attempt to do the opposite of their normal job, and slow the flow of freight says LoadStar. As shop, factory and plant closures continue around the world, the name of the game now is to keep inventory where it is – increasingly difficult as terminals, yards and warehouses become congested. “Distribution centres in Europe are geared around imports and can hold a maximum of two to four weeks’ worth of stock,” said one forwarder. “After that, the impact for goods such as homewares will be huge. Where is it all going to go?” RW Freight noted on its website that “Customs authorities in China have required all non-essential goods which have been loaded on vessels for export after March 27 to be unloaded.

How Panic-Buying Revealed the Problem With the Modern World - The Atlantic has an interesting article on the lessons of panic buying and also on the dangers of running the NHS at constantly full capacity instead of 85% capacity - it argues that our current JIT systems are very fragile and susceptible to unpredictable surges in consumer purchasing behaviour or viral outbreaks. “Temporary shortages are being caused by people adding just a few extra items and shopping more often,” said Fraser McKevitt, the head of retail and consumer insight at Kantar, which monitors consumer spending. The company’s study of 100,000 British shoppers found that only 6 percent of those buying liquid soap, and only 3 percent of those buying pasta, “have taken home extraordinary quantities.” Yet that relatively small, unexpected surge in demand was enough to generate social-media snapshots of bare shelves at inner-city supermarkets. When amplified by the traditional media, those frightening pictures convinced more of us that there was a problem with food supply. And, like in a bank run, perception quickly became reality. Big queues started to form. Online slots for supermarket deliveries filled up. The situation spiraled. The article also discusses the impact of cutbacks in the NHS as previous governments strove to improve efficiencies and reduce excess capacity (viewed as waste).

PwC: Supply chains will broaden, diversify in the wake of coronavirus - Supplychaindive has a report on the latest PwC survey of chief finance officers regarding what they intend to do to their supply chains going forward. A growing number of CFOs expect to change the breadth of their supply chains as a result of the COVID-19 pandemic, according to 50 CFOs, mainly from U.S. Fortune 1,000 companies, surveyed by PwC. Supply chain issues remain a top-three concern for roughly one-third of the CFOs in PwC's ongoing survey. Since the last survey "financial impact, including effects on results of operations, future periods, and liquidity and capital resources," gained the most ground in terms of CFO concern, while a reduction in workplace productivity, consumer confidence and not having enough information to make decisions lost some status as a top concern. Cost containment remains the number one priority for respondents.

A drop in consumer spending in Western countries is driving a new wave of blanked sailings says supplychaindive - MSC's decision came the same week Maersk announced it was canceling multiple trips (they’re both major container ship operators). The capacity reduction by these 2M members alone is equivalent to about a "21% capacity reduction in [Asia-Europe] trade," Sea-Intelligence Shipping Analyst​ Imaad Asad​ said in a release emailed to Supply Chain Dive. 2M is an alliance between Maersk and MSC that includes partnerships with other carriers.

Drop in box shipping contract rates points to 'a recession of seismic proportions' - The Loadstar (Link) says that long-term container shipping contracts have registered their first pricing decline since last October, prompting fears that the industry is heading towards “a recession of seismic proportions”. According to figures published today by Xeneta, its crowd-sourced freight rate benchmarking platform XSI Public Indices saw a 0.5% decline in long-term contracted rates this month, following “a sustained period of growth”. Year on year, the XSI was up 5.8% on March 2019 and up 2.2% from the beginning of this year, but with coronavirus lockdowns covering large swathes of global society, container supply chains are unlikely to avoid an impending economic recession. “This is a small, yet significant, step in the wrong direction for carriers,” said Xeneta chief executive Patrik Berglund.

Air cargo prices stabilising on some tradelanes - Loadstar says that some tradelanes are starting to stabilise. Airfreight prices out of Shanghai are continuing to surge, Freight Investor Services (FIS) and the TAC Index have revealed. Last week’s air freight rates on routes to the US from China rose 12.6%, to $5.72 per kg, while to Europe they were up 21.16%, at $4.58, “vastly higher than normal Q4 peak prices”, noted FIS. Much of the overall surge in prices to Europe was due to the 55.9% increase in rates to Frankfurt. However, FIS noted that the gains had levelled off slightly, in comparison with the previous week, “indicating a potential market plateau”. “This is shown in the final closing price for March, dropping 11 cents from China to Europe and a modest 4 cents from China to the US. “April and May prices are lifted by 5 and 10 cents respectively; doubt as to the strength of the future market has made the next few months far less predictable.”

Supply chain news in brief

  • The UK/Ireland to mainland Europe cross channel company P&O Ferries is laying off 1,100 staff as its passenger ferries go freight-only says the LoadStar - the staff members will be “furloughed” and put on 80% salary via a government scheme.

  • Singapore and Hong Kong have taken steps to permit badly needed freight ship crew swaps which had led to complaints at the highest level of the international maritime organisation (which is to seafreight what FIFA is to football/soccer). See here and here respectively. India is said to be introducing similar measures soon.

  • Visual - Flightradar has given some visuals on the how much flights have reduced by (Twitter link)

  • Brooks brothers (major US clothing company) has said it too is starting to make masks and gowns (link)

  • The Effects of COVID-19 Will Ripple through Food Systems - The Scientific American has a fascinating article on the medium term future for the food supply chain. They say that staple crops are likely to be less affected by measures to control the virus, but farmers growing more specialized ones could feel the pinch.

Good news / Humour section

  • A boss turned herself into a potato on a Microsoft teams meeting and couldn’t figure out how to turn it off (Twitter link)

  • Medtronic (a major global medical products manufacturer) has made its ventilator plans open source for anyone with the skills and parts to make (Link)

  • Xinhua (official China news media outlet) says 186 patients have successfully recovered from the virus and been discharged from a hospital in Wuhan (link)


Several asked if they can send me $/£/€ via Patreon (in some cases because I've saved them time or money, others for no reason at all). I don't need the cash (that's lovely though) but food bank charities are getting really hit hard with all this panic buying. Please consider giving whatever you'd have given me to a foodbank charity instead:
UK: https://www.trusselltrust.org/
France: https://www.banquealimentaire.org/
Germany: https://www.tafel.de/
Netherlands: https://www.voedselbankennederland.nl/steun-ons/steun-voedselbank-donatie/
Italy: https://www.bancoalimentare.it/it/node/1
Spain: https://www.fesbal.org/
Australia: https://www.foodbank.org.au/
Canada: https://www.foodbankscanada.ca/
USA: https://www.feedingamerica.org/
Thanks in advance for any donations you give. If there's foodbank charities in your country and it's not listed above, please suggest it and I will include it going forward.

submitted by Fwoggie2 to supplychain

Covid-19 update Wednesday 8th April

Good morning from the UK. For those people whose days blur into one another, today is a Wednesday. For any fellow Brits who haven’t realised yet, this Friday is Good Friday which means Monday is a bank holiday. 4 day weekend for us!
The UK and US continue to grab most of the global headlines - the UK due to the plight of its prime minister Boris Johnson (the TLDR there is that he’s still in intensive care, his condition is unchanged). The US is grabbing the headlines because of the sheer volume of cases / deaths in the country plus also for some of the quotes being given and actions being taken by President Trump.
Today’s round up is Guardian heavy. Sorry if you’re not a fan of them, I was pushed for time.

Virus news in depth

Coronavirus: UK will have Europe's worst death toll, says study - If you’re British like me this is rather frightening; the Guardian reports (Link) that “world-leading disease data analysts” (their phrase not mine) have projected that the UK will become the country worst hit by the coronavirus pandemic in Europe, accounting for more than 40% of total deaths across the continent. The Institute for Health Metrics and Evaluation (IHME) in Seattle predicts 66,000 UK deaths from Covid-19 by August, with a peak of nearly 3,000 a day, based on a steep climb in daily deaths early in the outbreak. The analysts also claim discussions over “herd immunity” led to a delay in the UK introducing physical distancing measures, which were brought in from 23 March in England when the coronavirus daily death toll was 54. Portugal, by comparison, had just one confirmed death when distancing measures were imposed. The IHME modelling forecasts that by 4 August the UK will see a total of 66,314 deaths. Spain is projected to have 19,209 deaths by the same date, Italy 20,300 and France 15,058. All three countries have imposed tougher lockdown measures than the UK. (Personal note for fellow Brits, 66k = a town the size of Paignton in Devon, Rochester in Kent, Loughborough in Leicestershire, Dewsbury in W Yorks or Washington in Tyne and Wear. I expect we will hear a lot more about this herd immunity and in particular Dominic Cummings once the pandemic ebbs away; Cummings will probably be thrown under the bus for it).

Fears of crisis in global car finance markets as owners seek payments help - Fears are growing of a crisis in the UK’s £75bn car loan market, where 6.5m vehicles have been financed through leasing deals with monthly payments that are already proving unaffordable for some laid-off as a result of the coronavirus says the Guardian (link). The Finance and Leasing Association (FLA), which represents the credit arms of the car manufacturers as well as the banks, said: “It’s early days in terms of quantifying the impact on arrears, but the number of forbearance requests has grown significantly in recent weeks.” Britain’s car market rests on billions in debt taken out by consumers, many of whom may now struggle to pay. Around nine out of 10 of the 2.3m new cars sold in a typical year in Britain are paid for using some sort of financing provided by an FLA member. The most common purchase method has been personal contract plans (PCP), where a buyer puts down a deposit and then rents the vehicle for two to three years at a monthly cost, typically around £250. Problems in the UK car loans market may pale into insignificance compared with the colossal scale of auto lending in the US, which totals $1.3tn (£1tn). Some of it has been securitised into bonds that bear echoes of “subprime” lending common before the financial crisis of 2007-08. Around $30bn of new subprime vehicle loans were issued in 2019, and there have been reports of some lenders verifying the income of just 8% of borrowers – whose loans are then bundled into bonds sold on Wall Street as an income stream for investors. However, the US Federal Reserve has already stepped in with a programme to support “asset-backed securities”, including bonds holding auto loans.

Trump threatens to hold WHO funding, then backtracks, amid search for scapegoat - The Guardian has written a critical article on Trump again, saying he hunted for a new scapegoat on Tuesday in an increasingly frantic attempt to shift blame for thousands of American deaths from the coronavirus, accusing the World Health Organization (WHO) of having “called it wrong” and being “China-centric”. Trump’s early inaction has come under renewed scrutiny in the past day after a New York Times report that Peter Navarro, Trump’s trade adviser, warned in a memo in late January that the virus could put millions of Americans at risk and cost trillions of dollars. Susan Rice, a former national security adviser, told the Washington Post that Trump’s missteps “cost tens of thousands of American lives”. The president has repeatedly denied responsibility and sought to blame China, the Obama administration and the media. On Tuesday, with the US death toll exceeding 12,000, he unleashed a tirade at the WHO, even though it raised the alarm in January, after which he made statements downplaying it and comparing it to the common flu. “They’ve been wrong about a lot of things,” Trump said at the daily White House coronavirus task force briefing. “And they had a lot of information early and they didn’t want to – they seemed to be very China centric” – implying that the WHO had toed the line of Beijing’s early efforts to minimise the scale of the outbreak.

Virus news in brief

Source: Guardian daily blog or CNN daily blog unless specified otherwise.
  • The number of countries not yet in lockdown continues to dwindle; Indonesia is the latest to announce a partial shutdown (link)

  • The Royal National Lifeboat Institution (RNLI) is planning to furlough a third of its staff and is warning that its lifeguards may only be able to patrol the busiest beaches this summer if the lockdown is suddenly lifted (link).

  • The French aircraft carrier Charles de Gaulle is returning to port due to an outbreak of the virus onboard. 40 sailors are currently said to be under strict medical observation.

  • A small antarctic cruise ship with 217 people on board is marooned off the coast of Uruguay at the moment because 60% of people on board have been infected by the virus (CNN).

  • New Zealand has recorded its lowest number of new coronavirus cases in a fortnight, one day after testing a record number of people.

  • Damage, injuries and deaths reports are still pending from Vanuatu after Cyclone Harold hit it as a category 5 two days ago but it’s now hit Fiji as a category 4. Videos coming in show significant flooding. Harold is moving on and expected to hit Tonga within the next 48 hours. The Matangi Tonga website reported that Harold’s arrival in the country would coincide with a king tide and a supermoon early on Thursday morning. An extreme high tide warning is in force for Tonga for Thursday and Friday. Rescue and support for the Solomon islands, Vanuatu and Fiji will be difficult due to the need to check incoming supporters for viral infections.

  • Authoritarian Turkmenistan gathered thousands of citizens for mass exercise events to mark World Health Day, state media said, ignoring the global trend for social distancing to fight the spread of the coronavirus pandemic. A state television broadcast late on Tuesday showed hundreds of people wearing identical coloured tracksuits cycling in close formation on a cold, damp day in the capital Ashgabat.

  • The cofounder of Twitter Jack Dorsey has announced he is donating $1bn USD to fighting the virus with any funds left after it subsides going to girls health, education and universal basic income (link). Forbes suggests that this is nearly ⅓ of his wealth.

  • Trains have started running to and from Wuhan again following a lifting of the lockdown.

  • Tottenham Hotspur football/soccer players have been seen jogging together in local parks in London in a breach of the distance separation guidelines (link).

  • Fifa has approved plans to extend player contracts and move transfer windows to allow seasons on hold due to coronavirus to be completed (link).

  • Several major horse race meetings in the UK that are due soon have been cancelled while Royal Ascot (in mid June) is trying to see if it can host its races behind closed doors (link).

  • USA - MLB is exploring options to launch its league behind closed doors early in Arizona according to a piece on ESPN (link). The plan calls for a start potentially as early as May with players residing in hotels and only venturing out for training or games. Any players that sign up could face being away from their families for up to 4.5 months. The idea is attracting a lot of noise on social media with the senior LA Times journalist Matt Pearce calling it “insane”.

  • An Australian Rugby League Is Thinking About Putting 500 Players on a Luxury Quarantine Island says Vice (link). The sport, one of Australia’s most popular is proposing to quarantine about 500 rugby league players and training staff on a luxury resort island and then ferry them back to the mainland to play televised matches in empty stadiums. “Can someone tell me why a bunch of meat heads and their hangers on should unnecessarily use a huge amount of COVID-19 test kits so that they can get back onto their already ridiculous salaries,” wrote one Twitter user. Another was just as blunt and called the tournament “the very definition of a non-essential service.”

  • USA - Acting Navy Secretary Thomas Modly resigned on Tuesday, a day after leaked audio revealed he called the ousted commander of the USS Theodore Roosevelt "stupid" in an address to the ship's crew. “When I walked on the quarterdeck of the TR I lost situational awareness and decided to speak with them as if I was their commander, or their shipmate, rather than their Secretary," Modly wrote. "They deserved better, and I hope that over the passage of time that they will understand the words themselves rather than the manner in which they were delivered. But what's done is done. I can't take it back, and frankly I don't know if I walked back up that quarterdeck today if I wouldn't have the same level of emotions that drove my delivery yesterday." he wrote in his resignation. (CNN link for more)

  • USA - As the United States hit another record for most deaths from coronavirus in a single day, President Donald Trump said the country was "way under" any coronavirus models. “We’re way under any of the polls or any of the models as they call them,” Trump said in an interview with Fox Tuesday night. “We are way under, and we hope to keep it that way, in terms of death.” The US has recorded at least 398,809 coronavirus cases, including 12,895 deaths, according to Johns Hopkins University. Some 30,613 new cases and 1,909 deaths were reported on Tuesday. The President, who seemed to be taking what could turn out to be a premature victory lap, said that New York “is getting ready, if not already, getting ready to peak.” Trump also said that he would love to start the economy back up “with a big bang,” opening the entire country to business all at once. But he said the administration is also considering opening up in sections. (CNN link)

  • Trump tweet: “The W.H.O. really blew it. For some reason, funded largely by the United States, yet very China centric. We will be giving that a good look. Fortunately I rejected their advice on keeping our borders open to China early on. Why did they give us such a faulty recommendation?” Factcheck.org says that US travel restrictions were announced 31st Jan and came into force Feb 2, a day after the WHO recommended travel restrictions.

  • USA; 3.5 million Americans are thought to have lost healthcare coverage in the past two weeks according to the economic policy institute (link). The institute says that many of the newly unemployed will suddenly face prohibitively costly insurance options. The linkage between specific jobs and the availability of health insurance is a prime source of inefficiency and inequity in the U.S. health system.

  • Vatican - The coronavirus outbreak is one of “nature’s responses” to human beings ignoring the ecological crisis, said Pope Francis Wednesday. “We did not respond to the partial catastrophes. Who now speaks of the fires in Australia, or remembers that 18 months ago a boat could cross the North Pole because the glaciers had all melted? Who speaks now of the floods?" the Pope told British Catholic journalist Austen Ivereigh in an email interview published Wednesday in The Tablet and Commonwealth magazines. “I don’t know if these are the revenge of nature, but they are certainly nature’s responses.”

Supply chain news in depth

Coronavirus: The Road to Economic and Social Recovery; We will recover, but how will we know when? - Descartes Labs, a geospatial imagery analytics startup based in California has written an interesting piece on medium.com (link) on how we may be able to use big data to understand when the economy will begin to recover. Remote sensing refers to data collected from satellites, aircraft, and distributed sensors that can provide information about the earth and help us understand human activities at a macro scale. While it is possible to understand the economic consequences of coronavirus through news reports and surveys, remote sensing provides direct observations that can be aggregated on a large scale and automatically processed for real-time insights. Descartes Labs, has developed a set of tracking and monitoring tools that can be used by businesses to understand consumer and supply chain activities that are critically important to revenues which harness aggregated mobility tracking, location-specific activity tracking, regional NO2 tracking and supply-chain tracking.

Logistics Manager Editor’s Blog: Has COVID-19 shown we have an e-commerce problem? - The editor of Logistics manager magazine (which has a UK lean in the topics it covers) has written an article reviewing the ecommerce sector. “If there is an area of the economy that is thriving right now it the supermarket sector. Yet limited delivery slots meant that only 14.6% of households received an online delivery in the four weeks to 22 March, up from 13.8% in March 2019 but most-likely well below actual demand. The truth is that as much as the logistics sector likes to celebrate its considerable achievements in the migration to e-commerce, some businesses were too stuck in the tried and traditional ways of working to actually reach the peaks. COVID-19 will change well-understood behavioural economics. Consumers won’t be the same after a global pandemic the likes of which we have never seen in our lifetimes.” He argues that businesses must immediately fully adapt to ecommerce channel fulfilment or they will most likely fail to survive. We were quick to celebrate the achievements of the sector, particularly in replacing the 30% of calories consumed outside the home with sales in bricks and mortar supermarkets. We were quick to celebrate that existing e-commerce infrastructure did not entirely fall apart. Yet there wasn’t enough capacity to deliver food to homes that wanted it, and in some cases needed it. There were not enough drivers and not enough vehicles, even if the right volume of food was in the system.

Supply chain news in brief

  • Major UK supermarket chain Tesco has announced that sales jumped 30% in the first few weeks of the coronavirus outbreak as shoppers stockpiled in the run-up to the lockdown but additional costs involved in feeding the nation could reach almost £1bn. The UK’s biggest supermarket group said the full financial impact of the crisis this year was “impossible to predict” but that extra payroll, distribution and store expenses could add anywhere between £650m and £925m to costs. The UK’s biggest private sector employer said no member of staff had been furloughed but 50,000 staff were currently absent on full pay. In the last fortnight the company said it had recruited more than 45,000 people to keep its shelves full (link).

  • Singapore has announced new plans to boost food production, including by turning car park rooftops into urban farms, as the Covid-19 pandemic disrupts global supply chains according to the Guardian daily live blog (link above). The city-state only produces around 10% of its food needs, but restrictions on population movement are wreaking havoc on farming and food supply chains – raising concern of shortages and price increases.

  • Easyjet has secured £600m ($739m USD) in government funding to help it survive plus requested to fully draw down on its $500 million revolving credit facility, secured against its planes. Combined, the funding will give it access to £2.3bn ($2.8bn USD) equivalent in cash. (Source Airlive.net)

  • Austrian airlines is pessimistic about the recovery time after the pandemic is over. In a series of tweets, it states that it assumes that it will have 25-50% of the demand in summer 2020 compared to 2019 and that pre-corona level will not be reached until 2023 at the earliest. It’s still reviewing what action to take but it’s likely that fleet reductions will occur.

  • Austrian airlines’ parent company Lufthansa has announced plans to retire 42 of its Lufthansa and Germanwings branded fleet. Six out of forteen of its A380s will go whilst all Germanwings operations will be discontinued with some merged into the Eurowings brand. The restructuring programs already initiated at Austrian Airlines and Brussels Airlines will be further intensified due to the coronavirus crisis and both companies are also working on reducing their fleets as is SWISS International Air Lines which will also adjust its fleet size by delaying deliveries of new short haul aircraft and consider early phase-outs of older aircraft. In addition, the Lufthansa Group airlines have already terminated almost all wet lease agreements with other airlines. The reductions will significantly reduce the groups’ presence at its key airports in Frankfurt, Vienna, Zurich and Munich.

  • CNN has a piece questioning whether US retail stalwarts Sears, JCPenney, Neiman Marcus and J. Crew will survive the epidemic. Many were forced to close stores in the face of declining sales even as unemployment reached a 50-year low. Now with a record number of Americans filing for jobless benefits, unemployment is likely to be elevated for months if not years to come, further cutting into Americans' appetite and ability to shop. Sears filed for bankruptcy in 2018 and its future has been in doubt ever since. JCPenney, Neiman Marcus and J. Crew are burdened by crushing debt loads. They're also at risk from declining market share, too many stores, limited online sales and a focus on selling discretionary items, analysts say.

  • A formerly closed General Motors plant where workers once built transmissions for the Chevrolet Malibu is reopening as a surgical mask production facility. The plant, which closed last August, began making Level 1 surgical masks on Monday as demand for face masks climbs across the nation. GM said machines needed to make the masks were delivered to the Warren, Michigan, plant last week. Workers will ratchet up production over the next two weeks so the facility can manufacture 50,000 masks a day (CBS link).

  • Several meat processing plants around the U.S. are sitting idle this week because workers have been infected with the coronavirus. Tyson Foods, one of the country's biggest meat processors, says it suspended operations at its pork plant in Columbus Junction, Iowa, after more than two dozen workers got sick with COVID-19. National Beef Packing stopped slaughtering cattle at another Iowa plant, and JBS USA shut down work at a beef plant in Pennsylvania. NPR has more (link).

  • Customs brokers applaud US Customs keeping borders open to cargo - Members of the Washington, D.C.-based National Customs Brokers and Forwarders Association of America (NCBFAA) interviewed by American Shipper this week generally praised CBP for permitting the flow of legitimate trade across the continent says Freightwaves (link). “The CBP commercial traffic operations have not been affected other than the reduction of operations at plants in Mexico, which are shutting down due to safety concerns and government mandates on the closing of non-essential businesses,” said Jose D. Gonzalez, who operates his own customs brokerage firm at Laredo, Texas. “CBP has been pro-trade and understands the importance of the supply chain process,” he added. “They are working with the trade stakeholders to ensure the flow continues.”

  • Politco says that President Donald Trump on Monday attacked his health department's watchdog for a new report revealing supply shortages and testing delays at hospitals responding to the coronavirus crisis, claiming the findings were inaccurate and politically motivated. "It's just wrong," Trump said during a briefing of the White House coronavirus task force, without providing evidence detailing what was incorrect. One hospital administrator said his mask supply would be depleted in three days. Another respondent said his system's regular supplier would take three to six months to obtain more masks and other gear due to the global rush for limited supplies. A third administrator said he fears tight supplies “endangers [staff] lives and the lives of their families.”

  • Major apparel retailer Primark says it will help to fund the salaries of people working for its suppliers (link)

  • The Loadstar says that forwarders are reporting concerns that shipments of medical supplies may not get through to their intended destination, as countries impound them en route for their own needs (link). The US has been particularly busy on this front, according to various media reports – so much so, in fact, that the Germans have accused it of “modern piracy”.

  • Forwarders are also starting to abandon air cargo in favour of road transport in some cases says The Loadstar (link). InstaFreight, a road specialist, is one forwarder offering trucking services across Eurasia and claims that, with congestion affecting Chinese exports, the delivery times are similar to air – but cheaper and “more stable”. Depending on the number of drivers and the origin and destination, InstaFreight claims a transit of between 20 and 22 days, but this could be shortened by a few days if customers pay a surcharge to use two drivers.

  • Forwarders are tearing their hair out over air shipment bookings. The Loadstar also reports (link) that there are significant issues for forwarders trying to move airfreight. “Capacity and space is a disaster, and we are seeing massive swings in rates from five- to 20-times the normal level. We have made bookings and then been advised the flights are cancelled,” said the chief executive of one mid-sized Canadian forwarder. “You book, plan, cancel, book another flight; sometimes three times in an hour,” he said, but so far, using freighter lift has been more straightforward, as all-cargo schedules have been reliable, he added.

  • If you’ve ever wondered how you ground - and then maintain - an airline fleet, KLM (which certainly has a large fleet to think about) has written a fascinating blog just for you (link).

Good news section

The Easter Bunny Is An Essential Worker, New Zealand's Ardern Says - New Zealand prime minister has clarified (link) to the nation’s children that the government considers the easter bunny and tooth fairies as essential workers and are thus able to continue doing their jobs. Ardern announced the exemption in response to rampant speculation by New Zealand's youngest citizens, who had wondered how the coronavirus crisis might affect the traditional arrival of colorful eggs, chocolates and other treats. The prime minister however warned that in some cases, the pair might not be able to provide the level of service young people have come to expect. "So I say to the children of New Zealand, if the Easter Bunny doesn't make it to your household, then we have to understand that it's a bit difficult at the moment for the bunny to perhaps get everywhere," Ardern said.
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