U.S. businesses and organizations are preparing for further strain on supply chains as a COVID-19 outbreak in southern China disrupts port services and delays deliveries, CNBC reports.
The Chinese province of Guangdong is facing an uptick in COVID-19 cases, and authorities there have closed districts and businesses to prevent the virus from spreading, according to CNBC. That's causing massive shipping delays, as Guangdong accounts for roughly 24 percent of all of China's exports.
"The disruptions in Shenzhen and Guangzhou are absolutely massive. Alone, they would have an unprecedented supply chain impact," Brian Glick, founder and CEO at supply chain integration platform Chain.io, told CNBC. But, combined with the supply challenges the world has faced since COVID-19, shipping is in "absolutely uncharted waters," he added.
JP Wiggins, vice president of corporate development at 3GTMS, a shipping software firm, told CNBC the port closures in China will cause more disruption for American consumers than those in other countries, as many of the affected shipments are going to North America.
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