Dear Valued Customers,
Future Electronics is having regular communication with our suppliers and our logistics service providers to understand how they may be impacted as additional countries continue to be affected by work and travel restrictions as a result of the COVID-19 pandemic.
Distribution Center (MADC) remains fully operational - click here for more details.
Read Omar Baig’s Letter to Customers (dated March 26th).
At Future Electronics we continue to work very closely with our suppliers and logistics service providers on our joint plans to ensure we minimize any impact to our customers.
Our Worldwide Future Distribution Centers are fully functional and operational.
The Malaysian government reinstated the Conditional Movement Control Order (CMCO) in its capital city and in the neighboring state of Selangor. However, this announcement does not restrict any economic activities in the area. At this time we are not seeing any reported impact from our manufacturers. We will continue to monitor the situation and provide updates.
While the global transportation network has stabilized from the difficulties in the first quarter of this year, the US ocean market has become increasingly problematic. Below is a breakdown of the current situation by market.
Global Air Freight Update:
Some passenger flights are being reinstated although not close to levels seen before the pandemic, the forecast is still that passenger flights will not recover to those levels before early to mid-2021. Delays of approximately 1 week should be expected on cargo originating in China, Hong Kong and South East Asia.
Global Ocean Update:
Capacity remains tight with an increase in electronics and consumer goods departing major ports in Asia. This has been compounded by a shortage of available equipment particularly on exports from both China and the USA. Rates are rising to pre COVID levels as industry expert predict a strong peak season in Q4 2020. There is still considerable unpredictability in the market so shippers are being advised to remain flexible. Delays at US ports are becoming increasing long due to equipment and labour shortages which is impacting transit times by approximately 2 weeks.
International Parcel Update:
Some weight and service restrictions are still being imposed in the International small parcel market particularly from origins in Asia. While much of the severe backlog that existed in China and Hong Kong has been cleared, some delays should still be expected. The most up to date information can be found on their COVID-19 service information web pages. Links are here: DHL COVID-19 Service Updates and FedEx Coronavirus Service updates
US Domestic Parcel update.
Record volumes continue to be seen in the US parcel market as consumers continue to shop online. Labour remains difficult to find to support that increase in volume. Some delays of 1 day and greater are being reported in specific areas of the US by the parcel carriers, in addition to the adjustments of their delivery commitment times. We continue to monitor the situation and work closely with our partners to jointly plan how we can continue to support our customers effectively.
Future Distribution Centers: In order to remain available and ready to continue to serve our suppliers and customers, we have enacted stringent protocols to reduce the likelihood of a facility wide outbreak.
Frequently Asked Questions:
Safety of Packaging: A number of customers have asked us if the virus can be contracted on receipt of a shipment from China. Please see the response from The World Health Organization (WHO) below:
Is it safe to receive a package from China or any other place where the virus has been identified?
Yes, it is safe. People receiving packages are not at risk of contracting the new coronavirus. From experience with other coronaviruses, we know that these types of viruses don’t survive long on objects, such as letters or packages.
What precautions is Future Electronics taking to keep it’s team members and partners safe in affected areas?
We are closely monitoring the situation regionally and meeting daily to update and modify actions plans.
What are the specific actions you are taking in your global distribution centers to prevent supply chain disruption?
In order to minimize and mitigate the possibility of COVID-19 impacting our global operations, we have enacted the following plans effective immediately:
- All non-essential travel has been cancelled.
- All visitor tours have been postponed indefinitely.
- Temperature screening of all team members prior to the commencement of every shift.
- Isolation rooms created to quarantine potentially impacted team members.
- Increased cleaning staff and have been added.
- Workstation wipe downs between shifts.
- Carriers/couriers are prohibited from entering distribution center common areas.
- Additional hand sanitizers, wipes, cleaning product has been purchased, distributed, and are in use.
- Split shifts and breaks where applicable to minimize contact.
What is the duration of these actions?
Our team is fully committed to ensuring the safety of our team members and customer supply chains are not negatively impacted. We will continue with these actions until the WHO and other health organizations suggest that it is safe to resume regular operations.
What are your partners doing to ensure continuity?
Future Electronics is in regular contact with all of our partners to review their action plans, capacity impact, and updated information in near real time.
Our priority is to ensure the safety of our employees and to providing our customers with security of supply, product availability and the information required to keep you up to date with the latest information.
Please be patient as this situation is evolving. We will provide updates as more information becomes available.
Note that while we are endeavoring to provide you with up-to-date and accurate information, we are relying on third parties, including governmental and public organizations as well as manufacturers and suppliers, for much of the information provided. We cannot validate this information independently and cannot be held responsible for its accuracy and completeness. Moreover, the situation is fluid and production disruptions and shipping delays are expected. While we will not bear any liability for these force majeure issues which are outside of our reasonable control, we will continue to promptly pass along to our customers any pertinent information we receive from our suppliers and logistics providers.