CNBC: Even As China’s Factories Restart, Coronavirus Has Already Wreaked Havoc on Global Supply Chains

CNBC reported that supply disruptions globally will be disrupted for months as the world scrambles to make up for losses in areas where COVID-19 first originated. While many struggling retailers have already been forced to close indefinitely or issue massive layoffs, the ripple effect of the weeks and months long shutdowns could be seen as far out as back-to-school or the coming holiday season. 

As the name of Black Friday famously indicates, most retailers don’t see profits go “in the black” until these highly-anticipated seasons. However, all of that could change as the result of the lasting economic toll that the pandemic has taken. 

“In 25 years, I have never seen anything like this,” said Satish Jindel of parcel managing and logistics platform ShipMatrix as reported by CNBC. “There is a psychological element, which is very hard to predict. ... This is an unprecedented situation.”

According to CNBC, footwear is one of the most largely-imported goods from China sold in the U.S. at 70%, and in January of 2020, imports of footwear fell the most in over a decade. CNBC estimates that losses for retailers could amount to at least $700 million from March until April 20. While trade wars were already a catalyst for the diversification of more U.S. supply trains, COVID-19 could cause an even bigger, albeit unintentional push to limit the reliance on Chinese manufacturing. 

Read the full story in CNBC here.