Covid-19: Supply chain disruptions make Cos airlift parts

The Coronavirus outbreak has disrupted supply chains of electronics parts manufacturers and automakers alike. These companies are reportedly forced to pay very high rates to bring parts from China and South Korea on chartered flights.

Tata Motors has told the media that it would take at least 90 days to replenish their supply chain via normal sea freight. The carmaker is expected to airlift some components in the short term.

Companies in the field of automobiles, pharmaceuticals and consumer electronics depend on the aforementioned countries for import of raw materials. Special charter flights are offered at a premium of 125% compared to the regular cost of US$ 220,000 per 100 tons of cargo.

Prices in the electronics industry have already increased by 3-5% but it is not yet known if carmakers would increase their prices or absorb the increased costs.