August 27, 2020
Iowa Gov. Kim Reynolds this week allocated roughly $100 million of CARES Act relief funding for farmers, producers, and agricultural industries that have been damaged by COVID-19. The money will flow through a variety of programs administered through the Iowa Economic Development Authority and the Iowa Department of Agriculture and Land Stewardship. More details can be found here.
Meanwhile, CIRAS beginning in September will consolidate the weekly Manufacturing and Food Industry roundtables into a single weekly event held at 7:30 a.m. every Tuesday. If you are already registered for either roundtable, you will be registered automatically for the new single weekly roundtable. If you would like to attend the roundtables for the first time, you can register here.
We have added the following recordings of our weekly COVID-19 Manufacturers and Food Industry roundtables, to the COVID-19 Webinar Library:
- Manufacturing Roundtable: COVID-19 and Childcare Needs
- Manufacturing Roundtable: Ventilation and HVAC Recommendations in Relation to COVID-19
- Manufacturing Roundtable: Supply Chains Disruptions, Updated
- Food Industry Roundtable: COVID-19 and Childcare Needs
- Food Industry Roundtable: Ventilation and HVAC Recommendations in Relation to COVID-19
We also have added the following guide/white paper under Protecting Your Business:
Other updates related to supply chain issues:
- Several areas of the country continue to experience COVID-19 hotspots in terms of new infections. The list includes California, Texas, Georgia, and Florida. If you have customers or suppliers in these regions, they may be experiencing spot supply chain disruptions.
- The dual tropical storm/hurricanes Laura and Marco that are hit the Gulf Coast this week may also create disruptions to supply chains in those regions.
- The group FTR Transportation Intelligence has created a U.S. freight COVID-19 intelligence web page which provides freight recovery indices for rail and truck freight as well as COVID-19 impact heat maps for truckload volumes and spot rates within the United States. These are useful for determining local market impacts on the freight market.
August 14, 2020
Iowa ended the week with more than 50,000 COVID-19 cases and storm-related disaster declarations in more than two dozen counties.
Meanwhile, CIRAS has added the following Selling to the Government webinars to the COVID-19 Webinar Library under Protecting Your Business -> Restoring Revenue:
- Virtual Networking and Customer Meetings (presented by Entellect LLC)
- Doing Business with the U.S. Department of Health and Human Services (HHS)
- Iowa Emergency Management Response – How Do I Sign Up as a Vendor?
We have also added the following recordings of our weekly COVID-19 Manufacturers and Food Industry roundtables, to the COVID-19 Webinar Library:
- Manufacturers Roundtable: Internet Marketing
- Manufacturers Roundtable: Testing Employees for COVID-19
- Food Industry Roundtable: Internet Marketing
- Food Industry Roundtable: Testing Employees for COVID-19
And, you can now find the following guides on PPE on the Supply Chain Disruptions page:
Other updates related to supply chain issues:
- Trans-Pacific freight volumes are trending higher during this pandemic than initially forecasted, driving up freight rates.
- Temperature-controlled warehousing capacity is tightening as manufacturers adapt to new consumer buying habits and anticipate increased pharmaceutical volumes due to COVID-19.
- The reopening of schools and universities is driving new demand for PPE and cleaning & disinfection supplies. Available supply of some of the brand-name products remains tight.
August 3, 2020
Iowa Gov. Kim Reynolds will resume 11 a.m. press conferences this week to provide Iowans with regular updates on COVID-19. The Tuesday and Thursday news conferences were announced two weeks after Reynolds released new guidelines for school re-openings and a week after she reauthorized social distancing requirements for bars, restaurants, and other public establishments.
In other news, CIRAS has decided to halt in-person events because of the coronavirus pandemic and move to online-only education through at least December 31, 2020.
As a result, we have built a library of online webinars to serve as useful business resources for Iowa manufacturers and other companies impacted by COVID-19. All previous webinars and podcasts have been relocated to this library, including our weekly Manufacturers & Food Industry roundtables and our webinars and podcasts related to various COVID-19 support and business recovery topics.
Check back often, as we will continue to add content to this page.
Other CIRAS website news:
- We recently updated the Cloth Face Covering COVID-19 Sources in Iowa document located on the Supply Chain Disruptions page to include information on the availability of child-sized masks.
- An updated CIRAS Return to Office plan also has been posted. Companies may use it as an example or template to build their own Return to Office plans.
- We added a new guide Testing Employees for COVID-19 on the Workforce Considerations page.
Other updates related to supply chain issues:
- Supply chain industry players continue to report high demand for available and planned warehouse space driven by the ongoing pandemic and increase in e-commerce.
- Parcel and express transport companies reportedly are starting to increase their rates with shippers due to the high demand for their services and increase in residential deliveries because of the pandemic.
- The U.S. government and pharmaceutical companies are planning for the mass distribution of potential COVID-19 vaccines down the road. It is anticipated this will have major impacts to the logistics and transportation industry and capacity on a global basis as capacity is redirected to vaccine distribution.
July 23, 2020
Iowa City’s mayor this week announced an order mandating cloth face coverings in public. This joins a string of other coronavirus-related restrictions implemented by cities and counties across the country – including the city of Chicago, which recently added Iowa to a quarantine list. Travelers entering Chicago from Iowa are required to quarantine for 14 days.
More on protection:
The topic of last week’s Manufacturers Roundtable (including the Food Industry Roundtable) was performing an assessment of your company’s COVID-19 Preparedness – a way to gauge potential problems as firms deal with resuming production, staff returning from remote working arrangements, and the recent spikes in COVID-19 infections. A link to a recording of this session can be found here. Companies can perform this assessment internally, or can engage CIRAS to help them conduct a no-cost assessment.
This week’s roundtable topic is Return to Business Visits. A link to the recording of this session can be found here.
CIRAS website news:
- We have recently updated the Cloth Face Covering COVID-19 Sources in Iowa document located on the Supply Chain Disruptions page.
- A new Financial Framework webinar to support companies dealing with financial impacts of COVID-19 has been added to our website.
- A link to the Iowa Economic Development Agency’s COVID-19: Small Business Utility Disruption Prevention program has been added to the Financial Resources page.
Other updates related to supply chain issues:
- Severe summer rains have created flooding in China’s Yangtze River region, including Wuhan, and has delayed shipments of PPE to the U.S. by several weeks. The delays are expected through July at a minimum.
- From a recent Reuters article, U.S. Customs and Border Protection has placed a halt order on import of rubber gloves from one of the top global suppliers, based in Malaysia, due to concerns over forced labor. They note that global consumption of protective gloves is expected increase by more than 11 percent to 330 billion pieces this year, two-thirds of which are likely to be supplied by Malaysia.
- YCR Worldwide (previously known as Yellow Freight), the fourth largest LTL carrier in North America, received a $700 million loan from the U.S. Department of Treasury via the CARES Act in exchange for the government taking a 30 percent equity stake to help it avoid bankruptcy. There has been some push-back in the justification that YCR is critical to the defense supply chain; however, this step will help limit further short-term disruptions in trucking capacity for shippers in the U.S.
July 7, 2020
Iowa Gov. Kim Reynolds is placing $490 million of the $1.25 billion in COVID-19 relief funds that Iowa is receiving through the CARES Act into the state’s Unemployment Insurance Trust Fund. State officials say this is a move to keep unemployment taxes stable for Iowa employers in 2021.
At the federal level, the U.S. government has extended the Paycheck Protection Program (PPP) through August 8 using the current balance of undistributed monies for funding. This program was originally scheduled to end after June. Going forward, 60 percent of any money received from the program needs to be used to keep employees on a company’s payroll (down from the original 75 percent criteria). PPP money also can now be used to cover certain expenses for up to 24 weeks, up from an original eight weeks. There may be additional rule changes, so please check here for the latest updates from the Small Business Administration.
CIRAS website news
Reminder – We have changed the platform for our weekly Manufacturing & Food Industry Roundtables from Zoom to Go-to-Webinar. The topics generally are the same for both roundtables each week, though the discussion is slanted towards the respective audience. Each week we cover a new and timely COVID-19 business topic. Register for the General Manufacturing Roundtable here, or go here to register for Food Industry Roundtable.
Recordings of last week’s roundtable discussion of Thermal Screening can be found here.
Other updates related to supply chain issues
- Trucking capacity within North America generally remains tight as volumes recover, but carriers have been slower to add capacity.
- Manufacturers of retail and food products continue to narrow their product lines to streamline their supply chains. One of the latest examples is Coca-Cola eliminating their refrigerated products and associated specialized delivery and storage equipment in the supply chain.
- The food supply chain from farm to factory remains at risk due to COVID-19 outbreaks with the latest concern being fresh fruit coming from the U.S. Northwest which is dependent upon temporary harvest labor.
June 24, 2020
After adding two Test Iowa sites to test for COVID-19 last week, Gov. Kim Reynolds this week announced the closure of two others, leaving a total of 18 after today. Eight large-scale, drive-thru test sites are located in Black Hawk, Buena Vista, Dallas, Linn, Marshall, Polk, Pottawattamie, and Scott counties. Ten clinic-affiliated sites are also available in Black Hawk, Carroll, Cass, Crawford, Des Moines, Dickinson, Dubuque, Mitchell, Page, and Union counties.
Meanwhile, CIRAS has made several updates involving our COVID-19 website, including:
- CIRAS is continuing our weekly COVID-19 Manufacturing Roundtables. These free webinars feature a different pandemic-related topic each week, including workforce issues during COVID-19, supply chain trends, return to work plans, temperature screening, and other topics. Attendees are encouraged to ask questions and share their own examples of best practices with the group. A general Manufacturers session is held each Tuesday from 7:30 a.m. to 8:00 a.m., and a Food Industry session is held each Thursday at the same time. To register, go to the CIRAS Iowa Business Training, Events, and Workshop Recordings of our recent roundtable sessions can be found at these links:
- COVID Update Roundtable, Manufacturing: Social Distancing in the Workplace,
- COVID Update Roundtable, Manufacturing: Restoring Revenue,
- COVID Update Roundtable, Manufacturing: Supply Chain Risks,
- Food Industry sessions of the above topics can also be found under Reference & Information on our COVID-19 Food Industry
- Please note the reminder on our Financial Resources page about the end of the Paycheck Protection Program (PPP) on June 30. Almost $130 billion in funding still remains. If you have not accessed the PPP funding and are still interested, please contact a local lender NOW. It may take you a couple of days to find a lender, and they need to have time to process the application before submitting it to the SBA. You do not want to wait until June 30.
Other updates related to supply chain issues include:
- Real estate firms continue to report increased take-up of warehouse capacity in North America because of the growth in on-line business due to COVID-19 and increased inventories across retailers and manufacturers.
- Domestic freight volumes continue to increase from recent lows, however international freight volumes remain highly variable.
- As a reminder, the scheduled implementation of the USMCA (United States-Mexico-Canada Agreement) which replaces NAFTA, is July 1 and is not affected by the COVID-19 pandemic.
June 10, 2020
Beginning 6/12/2020, Iowa businesses will be able to open at full capacity instead of limiting themselves to 50 percent. However, restaurants, bars, fitness centers, theaters, hair salons, and other businesses still will have to take steps to allow for social distancing, according to a new emergency proclamation signed by Iowa Gov. Kim Reynolds.
Meanwhile, CIRAS has made as series of updates to our COVID-19 Business Resources website:
- We have added a specific page on managing COVID-19 in the Food Industry. It can be found here.
- We have added a link to information on Virtual Recruitment Strategies to our Workforce Considerations
- Please continue to watch our website for recordings of our weekly COVID-19 Update Roundtables with manufacturers.
Other updates related to supply chain issues include:
- The Federal Motor Carrier Safety Administration (FMCSA) has extended its national emergency exemption for hours of service to July 14, but it has excluded grocery restocking, fuel, and precursor raw materials from the extension. Items such as livestock & feed, medical equipment & supplies, and PPE and cleaning products remain included.
- COVID-19 cases in Mexico are spiking, and the Mexican government may slow down its re-opening plan. Currently, the U.S.-Mexico and U.S.-Canada borders are limited to essential travelers only until June 22.
- The U.S. transportation industry is reporting some stabilization in volumes and pricing as the economy starts to slowly recover from COVID-19.
May 29, 2020
Iowa’s bars, wineries, and social clubs are now open at 50 percent capacity with casinos, bowling alleys, and outdoor performance venues slated to open on June 1. Details of the most recent proclamation can be found here.
Meanwhile, CIRAS has made a series of updates to our COVID-19 website:
- We have included a copy of our own CIRAS Return to Office Plan in Word format that companies can modify and use as appropriate as desired.
- An Employee Self Evaluation Tool has been added under Workforce Considerations as an example of a form employers could send home with their staff to conduct self-screening before reporting to work daily.
- The recording from our weekly COVID-19 Manufacturers Roundtable is available. This week’s topic was Return to Work Planning.
Other updates related to supply chain issues include:
- There has been an increase in transport companies considering or filing for bankruptcy protection due to decreased volumes and pricing. Shippers should be prepared with risk mitigation and back-up strategies.
- The FDA has removed authority for more than 60 China-based distributors of N-95 or equivalent masks to import into the U.S. due to quality concerns. The current number of China approved masked providers is 14.
May 21, 2020
Iowa will allow museums, zoos, swimming pools, and wedding venues to open beginning tomorrow morning so long as they follow certain hygiene and social distancing restrictions outlined in a proclamation signed by Gov. Kim Reynolds on Wednesday. Movie theaters likewise will be able to open at 50 percent capacity. Summer high school sports activity will be allowed to resume on June 1.
Website Updates – CIRAS has made a series of updates to our COVID-19 resources on our website, including but not limited to:
- Added a Return to Work section to our Protecting Your Business page, including an updated CIRAS Preparedness & Return to Work Checklist for Iowa.
- Added a Thermal Screening Best Practices guide to complement our existing Screening Employees guide under Protecting Your Business.
- Added a link to our new CIRAS Virtual Process Review on our Other Resources page where companies can upload of their processes for CIRAS to review and provide recommendations in a virtual format.
- A series of CIRAS COVID-19 related webinars and podcasts recorded and available on our website, including Digital Marketing Tips During Times of Crisis; COVID Update Roundtable with Kelsey Knowles, Attorney at Belin McCormick; Techniques for Finding Better Customers; Understanding Employer Paid Leave Requirements Under FFCRA; Supply Chain Disruptions and What We Are Seeing and others.
Other updates related to supply chain issues include:
- The re-start of auto assembly plants continues, but it is a slow process. Several plants are having intermittent pauses to respond to new infections, supplier issues, or increased cleaning and disinfection.
- It has been reported that more than 1,200 passenger aircraft have been temporarily converted to carry freight cargo.
- U.S. ethanol production appears to have hit bottom and has started a recovery with production increases in each of the last three weeks.
- Most industry analysts anticipate more stable ocean capacity and rates for international shipments for the second half of the year, though there is a temporary over-capacity issue for cargo from Asia to North America due to pent-up supply and reduced ocean sailing capacity.
- Many manufacturers of consumer products, such as Harley Davidson, are streamlining their product line to focus on production of their more popular items to provide them with a more efficient supply chain and managing fewer parts and suppliers.
May 14, 2020
A wide range of retail establishments can open for business across Iowa beginning at 5 a.m. tomorrow, according to a proclamation Iowa Gov. Kim Reynolds signed Wednesday. The changes permit restaurants (but not bars), fitness centers, libraries, and racetracks to open in 22 counties that previously had been under increased restrictions due to higher COVID-19 activity. Salons, barbershops, and tattoo parlors also are able to reopen throughout the state “with appropriate public health measures in place.”
Other updates impacting Iowa industry include:
- Mexico has announced a gradual reopening of its economy, stating that industries like construction, mining, and car and truck manufacturing will be allowed to operate beginning May 18 under certain health protocols to protect workers.
- S. automakers are planning to reopen many of their assembly operations and plants on May 18 after installing protective barriers and other social distancing equipment and implementing new policies.
- Many meatpacking facilities have reopened with changes as recommended by CDC and OSHA over the past week. The USDA has released the list of reopened plants here.
- Retailers have seen dramatic increases in on-line ordering and many have turned to shipping from previous retail-only outlets due to the COVID-19 pandemic. Carriers like FedEx and UPS are working with the retailers to better manage this flow of goods including, at times, some shipment limits to manage capacity.
- Ocean shipping companies continue to reduce sailings and capacity to better match demand, which is between 20 and 25 percent lower than year-ago levels.
- Available warehouse capacity in the U.S. continues to shrink as imports (purchased before or at the beginning of the COVID-19 pandemic) continue to arrive in the U.S. but face decreased consumer and business demand.
May 7, 2020
With some restrictions, Iowa dental offices, campgrounds, tanning facilities, and drive-in movie theaters will be open for business statewide effective tomorrow, according to a proclamation signed by Iowa Gov. Kim Reynolds earlier this week. Malls, fitness centers and aquatic centers also will be able to open at a reduced capacity in the 22 counties that still face tighter restrictions.
Reynolds today also announced changes to coronavirus.iowa.gov, including new ways to download and look at COVID-19 case data.
Other items impacting Iowa industry include:
- Mexico has a generally broader shut-down of manufacturers compared to the U.S., and some U.S. factories who receive materials from cross-border suppliers in Mexico may see some disruptions to supply.
- U.S. Immigration and Customs Enforcement is working with companies to identify and reduce the flow of counterfeit and subpar COVID-19 related products into the U.S., including such items as masks and test kits. They have identified more than 19,000 suspect internet domain names and have stopped more than 500 shipments so far.
- The Logistics Manager’s Index reports that logistics activity, including transport capacity, usage, and pricing, has hit an all-time low in April. The U.S. trucking industry has dramatically reduced orders for truck tractors and trailers. International air freight has seen dramatic price increases and price volatility.
- The global apparel supply chain is under considerable stress due to the closure of many apparel retail outlets around the world due to COVID-19.
- Some retailers have begun to limit meat purchases amid the spot shutdowns of meat processing locations across the U.S. Overall, there is sufficient protein available in the supply chain; however, there may be spot shortages of specific types or cuts of meat.
April 27, 2020
Restaurants, fitness centers, retail stores, and shopping malls in 77 counties will be able to open at 50 percent capacity beginning May 1, Iowa Gov. Kim Reynolds announced Monday. The newly lightened restrictions, which the state says applies to counties where COVID-19 activity is low or declining, also includes removal of restrictions on in-person church services.
Reynolds said all limitations currently in place in Iowa’s remaining 22 counties will remain in force through at least May 15. Those counties include: Allamakee, Benton, Black Hawk, Bremer, Dallas, Des Moines, Dubuque, Fayette, Henry, Iowa, Jasper, Johnson, Linn, Louisa, Marshall, Muscatine, Polk, Poweshiek, Scott, Tama, Washington, and Woodbury.
Monday’s announcement follows the governor’s decision on Friday to ease limits on elective surgeries and farmers markets.
April 17, 2020
Residents of 14 northeast Iowa counties are under new restrictions after Iowa Gov. Kim Reynolds on Thursday signed a new emergency proclamation for RMCC Region 6. The new order limits most social gatherings to only people who live in the same household. It also requires that northeast Iowa businesses a) evaluate whether they can have more staff work remotely; and b) take reasonable precautions against COVID-19, such as implementing employee screening, social distancing in their plants, and increased cleaning and hygiene practices.
Other items impacting Iowa industry include:
- China has implemented new regulations starting this week that target 11 classes of PPE items for extra inspections. The list includes masks and ventilators, protective clothing, infrared thermometers, surgical goggles and gloves, and medical disinfectants. U.S. importers are reporting delays in getting export releases from the Chinese government for these items.
- The $349 billion cap for the Paycheck Protection Program was officially reached on Thursday, and the SBA is unable to take any additional loan applications. Congress has indicated it wants to expand the cap; however, nothing has been passed at this time.
- There continues to be sporadic domestic freight delays due primarily to terminal congestion caused by stranded shipments originally meant for now-closed businesses.
- The recent series of temporary closures of meat processing facilities in Iowa and across the US due to COVID-19 exposures has the potential for limited supply chain disruptions on both the supply of items into the plants and the outbound supply of meat. Due to the previous high production levels and level of inventory in cold storage, industry experts do not see any widespread impacts, though specific brands or selection of meats may be impacted.
We also have made some additions to this website:
- Added the Iowa Department of Public Health’s Guidance for Iowa Businesses Experiencing COVID-19 Outbreaks among Employees under Protecting your Business. Within this guide, they request that all companies report to the Iowa Department of Public Health when 10 percent or greater of your employees are reporting COVID-19 symptoms (including fever, cough, sore throat, difficulty breathing, or any other respiratory symptom). Report to public health by filling out the survey at this link.
- A comparison of the traditional and emergency PPE supply chains was added to our site in the Supply Chain Disruptions
- Added a “Selling to the Government” topic area focused on COVID-19 opportunities.
- Added some recent podcasts and webinar links on COVID-19.
- Added a link to the US Chamber of Commerce Foundation’s “Save Small Business Fund” in the Financial Resources page.
- Added a link to IDPH’s “Guidance for Iowa Businesses Experiencing COVID-19 Outbreak among Employees” guide on the Protecting Your Business page.
April 10, 2020
The Iowa Department of Public Health today issued a “shortage order” requiring the cancellation of elective medical procedures and minimization of patient contact whenever possible to preserve personal protection equipment. The order also allows medical workers across Iowa to use PPE past its expiration date, to stop changing PPE between patient encounters, and to discharge COVID-19 patients once they become stable. Iowa now has 1,388 confirmed COVID-19 cases.
Updates of interest to industry include:
- Honda, Nissan and Chrysler have extended US plant shut-downs into late April and potentially later. This follows similar announcements from Ford and GM to delay their planned plant re-starts.
- Class 8 heavy truck orders are down 50 percent in March from the previous year. PACCAR extends factory closures to April 20.
- US transportation capacity is shrinking across all modes as carriers face low rates.
- The White House’s trade negotiating office assured that it will not impose import tariffs on certain Chinese medical products during the COVID-19 pandemic.
- Ocean shipping lines remain concerned about the build-up of inbound containers at their US container terminals. Consignees are refusing to accept shipments because of shut-downs or reduced demand.
- To ensure continuity of operations of essential functions, the CDC says critical infrastructure workers may be permitted to continue work following potential exposure to COVID-19 — provided they remain asymptomatic and additional precautions are implemented to protect them and the community. See the recommendations here.
April 6, 2020
Iowa Gov. Kim Reynolds today announced that the state now has 946 COVID-19 cases in 75 counties. Reynolds also released a new emergency declaration ordering the closure of all malls, social and fraternal clubs, bingo halls, libraries, museums, and campgrounds, among other entities.
Meanwhile, CIRAS has added additional links on the Workforce Considerations section of this website, including a guide to the FFCRA act. We also have added a link to the Iowa State University Library’s summary of PPE specifications and standards.
Other updates impacting industry include:
- The CDC is now recommending, in addition to a minimum 6-foot separation, the use of cloth masks by all people (including in the workforce). Per the CDC, surgical and N95 masks should continue to be reserved for the use of medical and emergency services personnel.
- Some west coast ports are seeing congestion and container storage capacity issues. A large amount of inbound, loaded containers are being off-loaded from ships, but closed businesses are not accepting deliveries.
- There are starting to be limited, temporary, shutdowns of specific individual offices of supply chain companies (e.g. an Amazon warehouse in Kentucky, US Customs office in Alaska) due to employees testing positive for COVID-19.
March 31, 2020
Iowa passed 400 COVID-19 cases on Monday, as the governor issued a call for Iowans to follow state guidelines and make masks that can be donated to health professionals. CIRAS continues working with Iowa Homeland Security and Emergency Management to help the agency find sources for 500,000 medical gowns, 500,000 sewn cotton face masks, and 500,000 plastic face shields. Meanwhile, the U.S. government announced that it is extending social distancing guidelines through the end of April.
Other items affecting industry include:
- Ceva Logistics and DHL Global Forwarding have invoked the force majeure clause in their logistics contracts due to the COVID-19 pandemic.
- UPS, FedEx, and Amazon have temporarily suspended some of their service guarantees and premium service transit-times due to COVID-19.
- Production in China has resumed (on average) to 70 to 80 percent of normal capacity, though the Wuhan area remains on lock-down until early April.
- Truckload rates to areas hit hard by COVID-19 are increasing due to a lack of back-haul freight. There are also traffic in-balances in higher shipment volumes for food and related products to grocery stores and significantly reduced volumes to other retail destinations, leading to variability in freight rates.
- The Federal Motor Carrier Safety Administration (FMCSA) has expanded its list of goods included in the agency’s emergency hours-of-service (HOS) waiver. Fertilizer, food packaging, and animal feed are now included, as well as raw materials used to manufacture bleach, disinfectants, hand sanitizers and similar items. These are in addition to the original list of medical equipment and supplies, PPE, food and related raw materials.
- Ford, GM, and Toyota have begun to shift a portion of their production capacity and resources to assist medical equipment and PPE manufacturers to increase production capacity.
- Several manufacturers in Iowa have temporarily shut down their operations for a few weeks to protect their workforce from COVID-19 – including Bridgestone, Flexsteel, and Winnebago Industries. Other manufacturers have suspended operations for a few days to conduct environmental cleaning. This includes John Deere in Dubuque and Whirlpool in Amana.
March 25, 2020
President Trump has signed a declaration declaring Iowa a disaster area, state officials announced today. The decision removes a federal spending cap and opens the door for a Community Disaster Loan Program. As of this posting, a total of 145 Iowans now have tested positive for COVID-19, with one fatality.
The more specific impacts to Iowa industry include:
- Northern European and US West Coast ports have fewer empty containers available to shippers than they traditionally have, but no outright shortages are currently being reported.
- Many passenger airlines are making available a portion of their passenger fleets for cargo charters due to high demand and higher air freight prices in the market.
March 20, 2020
California residents on March 19 were ordered to stay home except for “essential” travel. New York followed this morning by closing all “nonessential” businesses and ordering most state workers to stay home. Federal authorities have pushed the deadline for filing taxes back to July 15. Meanwhile, Iowa Gov. Kim Reynolds today signed another Emergency Health Declaration that, among other things, temporarily halts the collection of interest and fees on back property taxes, allows governments to hold public meetings electronically, and suspends evictions.
Some of the more direct impacts to Iowa industry include:
- The U.S. has reached mutual agreements with the Mexican and Canadian governments to implement restrictions on people traveling across the border, however this does not limit freight movements.
- Amazon is limiting new receipts of some goods from their third-party resellers to free up space in their network for high-demand goods.
- The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) has issued a national emergency declaration to provide hours-of-service (HOS) regulatory relief to commercial vehicle drivers transporting emergency relief in response to the nationwide coronavirus (COVID-19) outbreak. This has been expanded to include certain raw materials such as paper, plastic and alcohol. See: https://www.fmcsa.dot.gov/emergency/expanded-emergency-declaration-under-49-cfr-ss-39023-no-2020-002
March 18, 2020
Iowa restaurants and bars now are closed for everything but take-out and/or delivery business under an order signed March 17 by Iowa Gov. Kim Reynolds. The declaration of a “State of Public Health Emergency” also orders the closure of adult day care centers and public venues such as movie theaters, gyms, and casinos. Gatherings of more than 10 people are prohibited. The announcement followed a previous recommendation from the governor that Iowa schools close for classes though at least April 13.
Meanwhile, COVID-19’s impacts on Iowa manufacturers continue to ripple:
- The school closings in Iowa may create some workforce issues with companies as parents may need to stay home to care for their children (or elderly). Companies should consider alternative working arrangements as feasible to maintain their employees.
- There are reports of higher levels of competition for domestic shipping as the U.S. food and grocery supply chains struggle to keep up with the spikes in consumer demand and this competition may affect shipping availability for shippers overall.
- Air freight rates have increased more than 25% from China to the USA due to production picking back up out of China and reduced air freight capacity in the market.
- The drastic reduction of passenger flights from Europe to North America will also impact the availability of air freight from Europe as the majority of air freight from Europe moves in the bellies of passenger aircraft. Several airlines are looking to add charter freight capacity to this market, however shippers should expect to see higher freight rates.
- Reports from China indicate that manufacturing levels are ramping up and shipping bottlenecks are being worked through. Shippers should remain in close contact with their supply chain partners to understand these impacts.
March 8, 2020
- Shipping activity to and from China has resumed to near normal levels, however supply chain disruptions will continue to be felt for a while as shippers and ports work through their backlogs; carriers replace capacity, and material works their way through the long lead-times from Asia to North America.
- Passenger travel continues to drop impacting airlines and air freight capacity.
- The first confirmed cases of COVID-19 have reached Iowa with three reported cases in Johnson county, all related to their participation on an international cruise in Egypt.
- Manufacturers of retail and transportation goods should be aware of potential business disruptions from reduced consumer demand from end-users related to COVID-19 (e.g. reduced travel).
March 2, 2020
- On Friday, February 28, 2020 the World Health Organization (WHO) raised the global risk level for COVID-19 to “very high”.
- Airlines have begun to withdraw some capacity from South Korea and Milan due to the COVID-19 impacts on passenger and cargo demand.
- It has been reported that ship arrivals and container volumes at the Port of Los Angeles are down 25% due to reduced sailings from China.
- Some U.S. companies have started implementing COVID-19 Response Plans including limited non-essential travel and enhanced facility cleaning activities.
- Within China the national government has started a push to restart factory production and provinces (outside of Wuhan/Hebei province) have relaxed restrictions to support employees returning to work. Most factories have re-opened however most are also operating with reduced workforces.
- The FDA is reporting potential supply chain disruptions for some animal drugs, human drugs, and medical devices.
February 21, 2020
- Freight forwarders are reporting significant increases in air freight charter rates to/from China, and are expecting short-term general air freight cargo rates rate spikes as production ramps back-up in China.
- Containerized refrigerated cargo to China is being diverted to alternative ports due to existing reefer plug-in outlets in the ports being fully used due to cargo not being able to move inland.
- Internal transport (rail, truck) within China is still severely impacted. Export capacity from southern and eastern China are in a better position than the central and western parts of China but still well below normal levels. Transport and port activities around Wuhan and Tianjin basically remain at a standstill.
- The rate of new Infections within China is starting to slow, however infections outside of China are increasing, especially in South Korea.
- Factories are slowing resuming production in areas outside of the quarantine zones (e.g. in the Shenzhen/Guangzhou area, Shanghai/east coast areas, etc.)
- There are some initial reports that the supply of available empty containers for loading in North America is getting tight.
February 18, 2020
- Ships entering ports in Australia, Singapore, the United States and others have various docking restrictions in place until 14 days after they left a Chinese port.
- Travel bans and limitations in China have slowed the movement of hard-copy shipping documents to ports – a step that is delaying the clearance of import and export shipments into and out of China.
- Metal industry is expecting a reduction in supply due to a significant part of China’s metal production being based in affected areas.
- General production in China is likely to be impacted by delays in their full workforce returning to work and a slow, general ramp-up of parts from suppliers to their assembly plants and factories.
- Ocean carriers have “blanked” or cancelled sailings into China to avoid having empty vessels returning to Europe and North America.
- Passenger airlines have reduced or eliminated flights to China, reducing belly cargo capacity and impacting total air freight capacity into and out of China.