Wednesday, February 26, 2020

As coronavirus hits auto supply chain, question looms: Who pays for pricey freight?

As coronavirus hits auto supply chain, question looms: Who pays for pricey freight?

  • Air freight prices nearly doubled this month
  • Question over who pays remains
  • Economic impact spreading as well as virus

"...While Covid-19 coronavirus is not yet a global health pandemic, the outbreak's costs are mounting more than 7,000 miles away and it's not yet known who will be left holding the bill.
See the source imageAutomotive suppliers and automakers are gaming out how to ensure parts shipments depart China and make it to the U.S. West Coast and in plants throughout North America without even costlier disruptions.
...Plymouth-based Adient plc is projecting at least a $60 million hit to its income in 2020 from the virus; Troy-based Aptiv said the outbreak will drop income by as much as $80 million; and Van Buren Township-based Visteon Corp. said revenue in the first quarter alone with be impacted by $60 million..."
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