Medium, small logistical firms feel the pinch of virus attack

Source:Global Times Published: 2020/2/13 19:47:19

A worker disinfects the workshop in Faurecia (Chongqing) Automotive Parts Co., Ltd, a Sino-French joint venture, in Chongqing Airport Development Area in southwest China's Chongqing Municipality, Feb. 12, 2020. Under the guidance of concerning authorities, the company resumed production recently with comprehensive epidemic prevention measures. (Xinhua/Tang Yi)

Medium and small logistic companies are troubled as roads are blocked and market demand is low because of the coronavirus attack. Experts suggest that the local government subsidize them so that the companies can survive. 

Wei Jigang, a research fellow with the Development Research Center of the State Council, told the Global Times on Thursday that medium and small logistic firms play a key role in the supply chain, but they have been hit hard.

A manager surnamed Wang with the Mianyang Lianbang Express, a small delivery company in Sichuan Province, told the Global Times that all their logistic services remain closed until February 20.

"Logistics are closed, a lot of goods are stored in the warehouse and cannot be dispatched," he said, adding that the road closure caused the problem.

Wang said he did not know what to do and where to get his salary. "We have to wait and see," he said.

Liu Shengquan, a manager of a local logistic company in Wuhan, told the Global Times on Thursday that they have not been working since the start of the Chinese New Year, when the virus was spreading.

"Affected by the epidemic, many manufacturers have not started production, and we have no goods to deliver. Now logistics are paralyzed," he said.

Liu's company is a cross provincial delivery business, with more than 90 percent of its business outside Hubei Province. "There is no work now and we stay at home all the day. There's nothing you can do," he said.

Wang Kang, manager of another logistic company in Wuhan, told the Global Times that like other logistic companies, his business is shut until further notice.

"It's been like this for half a month," Wang said.

Although he can still manage to pay the rent and salaries for staff, he said that it can only last for three months if the situation does not improve.

Wei said that unlike large logistic companies that have stronger business resilience and government support, smaller ones are facing heavy challenges now because of the virus. 

"One problem behind it is that some policies are not unified and information is not symmetrical in some places," Wei said. "Relevant departments should unify policies and ensure that small and medium sized companies resume production as much as possible provided these firms can ensure adequate prevention and control measures."

Global Times


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