Table of Content

1. OVERVIEW
1.1. Catalyst
1.2. Summary

2. ECONOMIC GLOBALIZATION UNDERPINS THE IMPENDING DISRUPTIONS
2.1. China is highly integrated with the global economy
2.2. The Fukushima disaster highlighted the issues associated with an overreliance on a single market
2.3. Hurricane Maria revealed flaws in the US IV bag supply chain
2.4. The impact of Covid-19 will be notably more significant than that of SARS

3. CORONAVIRUS WILL HAVE A SUBSTANTIAL IMPACT ON FRAGILE GLOBAL SUPPLY CHAINS
3.1. The struggling automotive manufacturing industry will face increased pressure
3.1.1. Ramifications of the outbreak could force further consolidation
3.2. Consumer electronics manufacturers will experience month long delays
3.3. The outbreak has highlighted the pharmaceutical industry’s reliance on Chinese ingredients

4. THE GLOBAL TRANSPORTATION INDUSTRY IS ALSO FACING MAJOR DISRUPTIONS
4.1. The shipping industry is the backbone of global trade
4.1.1. Companies are suffering at the hand of cancellations
4.2. Air freight is also facing disruptions, though the impact is less substantial

5. LESSONS CAN BE LEARNT TO IMPROVE GLOBAL SUPPLY CHAINS IN THE FUTURE
5.1. Supply chain resilience is crucial to avoid disruptions
5.2. Manufacturing hubs in Latin America and Asia could benefit

6. APPENDIX
6.1. Abbreviations and acronyms
6.2. Sources
6.3. Further reading

7. ASK THE ANALYST

8. ABOUT MARKETLINE



List of Figures


Figure 1: Countries with higher rates of GDP growth tend to have high rates of growth in trade as a share of output
Figure 2: U.S. and Chinese GDP (PPP Basis) as a Share of Global Total: 1980-2018 (%)
Figure 3: China automotive manufacturing industry value: $ billion, 2014-18
Figure 4: Asia-Pacific automotive manufacturing industry geography segmentation: % share, by value, 2018
Figure 5: China pharmaceuticals market value: $ billion, 2014-18, market value has surged
Figure 6: Maersk relies heavily on China, therefore cancellations have had a huge blow

 

List of Tables


Table 1: Top 5 importers of goods and services from China