California “Shelter In Place” Impact on Global Supply Chains

Thursday March 19, 2020, California Governor Gavin Newsom issued a “Shelter In Place” order for the state of California. The order has an indefinite period and is targeted at controlling and slowing the spread of Coronavirus in California.

With this order, the risk to global supply chains grows stronger. California is home to the largest US port in the country, jointly The Port of Los Angeles and The Port of Long Beach. Coverage and information is not widely available given the infancy of the announcement, however we do know that this is social contract rather than a formal decree.

According to The Port of Los Angeles at this time, ports will remain operational as they have been identified as “essential services”. As of March 19, The Port of Los Angeles still holds that it is business as usual. “All ports and terminals open and operational”. Any changes to this status will be shared without delay.

Outside of the port being operational, the second and more critical concern now shifts to truckers, warehouses and rail operators. With vessels arriving daily and the port in operation to discharge, we will all be dependent on truckers continuing to operate, warehouses being open to receive goods, and rail operators to continue movement of cargo from The Port of Los Angeles to other inland destinations.

Info will be shared as it becomes available.