CNBC Television Why trucking is essential amid coronavirus supply chain disruption: Pilot Company CEO
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Jimmy Haslam, CEO of Pilot Company, joins “Squawk Box“ to discuss how the coronavirus pandemic has interrupted supply chains and how we can go about fixing it.
At first, U.S. retailers were most concerned about manufacturing facilities being disrupted by COVID-19 in China, where the virus originated.
Now, in the midst of a global pandemic, this is a much bigger issue than China. While some manufacturing operations are getting back up and running, much of the rest of the world is in distress.
The coronavirus could deal a blow to companies already on the brink of going out of business. While it may seem far off, the disruption is already starting to impact the shipment of goods to retailers for the back-to-school season, analysts say. And if the situation persists, it could end up hitting the holidays, when many retailers make the bulk of their profits.
“In 25 years, I have never seen anything like this,” parcel managing and logistics platform ShipMatrix President Satish Jindel said. “There is a psychological element, which is very hard to predict. ... This is an unprecedented situation.”
Parcel volume fell 2.4% among manufacturing customers in February 2020 compared with a year ago, according to data pulled by ShipMatrix. Health-care parcel volume dropped 2.2%, it said. And parcel volume was down 1.8% in the automotive and auto-parts sector.
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