Tom Manganello discussed the impact the coronavirus has had on Chinese manufacturing, and subsequently the U.S. automotive supply chain, in an article titled, "As coronavirus hits auto supply chain, question looms: Who pays for pricey freight?" in this week's Crain's Detroit Business.
With lower supply and lengthy shipment times from China, many U.S. suppliers are considering air freight to expedite deliveries. However, higher demand and limited access for travel to and from China have air freight costs soaring and the question of who picks up the tab remains unanswered.
Manganello, a partner in the Southfield office of Warner Norcross + Judd LLP and co-chair of the firm’s Automotive Industry Group, said: "Shipping is going to be expedited and there will be disputes on shipping terms. This all really just puts a magnifying glass on the interdependence of the supply chain. The irony, of course, is the (auto makers) started this big push for the supply chain to go to China and now they want them to pay for (the shipping during this problem) too."
Manganello and the Warner Automotive Industry Group have been closely monitoring the spread of coronavirus and developing strategies for suppliers caught in the middle. Crain’s Detroit Business subscribers can read the full story HERE.
