Bob Armstrong, Supply Chain Consultant and President, CILT N. America reviews the implications on the movement of goods during the Covid-19 pandemic including the implications of global supply chains on North America and the world

1. ciltinternational.org1 Covid-19 Best Practice Response
BEST PRACTICE RESPONSES-GLOBAL
SHIPPING & THE SUPPLY CHAIN
Bob Armstrong
President CILTNA
Global Shipping & Global Supply Webinar
THE CANADA-USA BORDER IS THE LARGEST UNDEFENDED BORDER IN THE
WORLD-WHATS HAPPENING WITH GOODS MOVEMENT BETWEEN CANADA
AND THE USA AND HOW IS OUR TRADE WITH THE REST OF THE WORLD

2. ciltinternational.org2 Covid-19 Best Practice Response
Bob Armstrong
President CILTNA
Global Shipping & Global Supply Webinar

3. ciltinternational.org3 Covid-19 Best Practice Response
• the border was closed to non-essential travel and remains closed
until June 21, 2020
• essential goods include food, life saving medicines, PPE, medical
protective equipment
• trucks crossing every day but can contain most goods and truck
traffic has been down 50%
• restrictions on tourists and day trips by people but essential workers allowed entry
THE CANADA-USA BORDER

4. ciltinternational.org4 Covid-19 Best Practice Response
• USA has no distinction between essential and non-essential goods, but a priority
exists
• the border is disproportionately more important to Canada than the US but the
threatened and actual closures have caused disruptions felt through supply chains in
the us especially in the Midwest Northern states where automotive industry has been
shut down
• trade has dropped dramatically in the automotive, steel, and other manufacturing
sectors
TRADE BETWEEN CANADA-USA

5. ciltinternational.org5 Covid-19 Best Practice Response
• biggest implication on the border is from 2 factors
• one is directly from COVID-19 but this pandemic will accelerate both.
• (1) the geo-political fall out from US industry being encouraged/forced to decouple from
China and,
• (2) the post pandemic shift to de-risk supply chains and re-design them accordingly.
ROOT CAUSES

6. ciltinternational.org6 Covid-19 Best Practice Response
• The GLOBALIZATION MAP will change over the next decade
• Supply chains becoming less dependent on China and new or existing far/near shore
alternatives will expand
• A divergence will exist between Canada and the USA in terms of the percentage change
in Chinese trade AND in terms of the new far and near shore markets entering the supply
chain
• Push to bring production home from overseas countries like China
GLOBAL SUPPLY CHAIN IMPLICATIONS

7. ciltinternational.org7 Covid-19 Best Practice Response
• PPE equipment such as masks and ventilators now being produced in Canada and the
USA instead of importing
• It is likely that more trade will take place in North America under the USMCA so goods
will be moving more North-South than the current East-West flow
• Federal governments, state and provincial will push for more local manufacturing to avoid
the problem caused by lack of PPE and medical equipment at the onset of COVID-19
NEW FOCUS ON NEAR SHORE SOURCING

8. ciltinternational.org8 Covid-19 Best Practice Response
• Air cargo enjoying spectacular increase in pharma/medical supplies movements due to
urgent nature during pandemic while air passenger traffic is down 98% as many flights
cancelled and air travel between Canada and the world is basically for urgent air cargo
on freighters
• Cross-border rail traffic down over 35% due to closures of auto, steel and other
production facilities during the pandemic
• Ocean carriers have cancelled sailings to and from North America as cargo down
significantly…container traffic down 35%
• The pandemic has triggered much innovation across the supply chain
IMPACT ON MODES OF TRANSPORT

9. ciltinternational.org9 Covid-19 Best Practice Response
Thank You
Bob Armstrong
President CILTNA
www.ciltna.com
armstrong@ciltna.com
1+(416) 418-3990