We continue to monitor the Colonial Pipeline situation and wanted to share the current status we see in supply chains that depend on gasoline fuel sources.
Geographical scope of gas impact: Still just Southeast region of US (Virginia, North Carolina, South Carolina, Georgia – and parts of northern Florida). The Northeast is in good shape today, but prices are increasing. South Florida gas supply not impacted.
Transportation modes impacted: Landside logistics are the areas of exposure – since prices are increasing and some cities reporting shortages at gas stations. The concern is how this will affect the trucking community and workers at warehouses, offices, terminals who need to fuel their trucks and cars etc.
Impact to Maersk operations: Our offices are open and working – and not impacted since most of our staff are working from home. Our warehouses are open and working. We have even brought in fuel trucks to our facilities to support some of our operations in the short term.
The operational outlook appears ok through the end of the week, but next week could be an issue if fuel supplies dwindle further. This would be felt in the availability of trucks and the ability of warehouse staff to drive to work.
The greatest concern of the fuel shortage currently is on long-haul trucking out of Norfolk and Savannah supply chains. Long-haul truckers could face difficulty finding gas in rural areas. As a result, we anticipate this is the first supply chain disruption point. We are in touch with customers affected with scenario-planning.
On a positive note, vessels are unaffected by the Colonial Pipeline – since their fuel is a different source provider.
Colonial Pipeline status: We will know later today if the Colonial Pipeline reopens. Keep in mind, once the pipeline reopens, there will still be several days of ramp up to normal levels so this should be factored into supply chain planning.
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