UK chemicals supply chains prepare for ‘major impact’ from coronavirus restrictions

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LONDON (ICIS)–The UK chemicals industry is worried about a “major impact” to its supply chains in the coming months after the UK government unveiled its latest measures to combat the spread of the coronavirus, trade group the Chemical Business Association (CBA) said on Tuesday.

Although British citizens are not under full quarantine as in France, Spain or Italy, the latest advice is for the public to stay at home whenever possible.

Prime Minister Boris Johnson gave the advice on Monday (16 March) afternoon and by Tuesday morning the streets of London were emptier than usual because the capital’s economy is dominated by the services industry and most employees are able to work from home.

The coronavirus pandemic has yet to fully hit the UK – around 1,500 people have tested positive – although medical chiefs warn that the figure is likely to be much higher.

On Tuesday, the CBA – the trade group for chemicals logistics firms in the UK – published its Supply Chain Trends for the last three months, and it revealed positive trends for both order books and sales.

However, these positives are set to “decline rapidly” amid the coronavirus outbreak, according to the group’s CEO.

“This survey reveals an industry emerging from three years of Brexit uncertainty and just prior to it beginning to experience the measures to counter the coronavirus,” said Peter Newport.

“The cumulative impact of these measures will have a major impact on the chemical supply chain in the months to come and its ability to deliver critical chemical components to the UK manufacturing sector.”