ST. LOUIS, MO (KMOX) - The supply chain for materials and goods will likely be disrupted for months, as a result of the ongoing pandemic.
Measures put in place to slow the spread of COVID-19 cut travel. John Ogilvy, Station Manager for the OEC Group in St. Louis, says that's impacted more than passengers, "passenger aircraft account for anywhere from 45-55% of the total air cargo capacity throughout the world on any given week, so you immediately knocked out half of the space availability and at the same time increased demand exponentially for some of these emergency products." He anticipates the decrease in business and leisure travel will continue.
Ogilvy says there's been a 4 to 5 fold increase in the cost of air freighting - leading companies to look for other ways to get goods quickly. He points out, many factories won't have the demand or the cash flow to sustain large inventories.
Ogilvy anticipates more companies will look for materials closer to home, "domestic sourcing will be a trend, it's just going to take a while for manufacturing in the US economy to catch up with some of that demand."
Ogilvy tells KMOX he believes the economic recovery in the US will be dependent on discovery and efficient supply of a coronavirus vaccine.