COVID-19 Bulletin: March 18

Good Afternoon,

Supply

U. S. oil prices fell below $25 a barrel.
Calgary-based Pembina Pipeline Corporation announced an approximately $1 billion reduction in capital spending plans, including deferral of its planned PDH facility.

Supply Chain

Our Gold Standard Distribution Partners report no disruptions of operations due to COVID-19.
Port congestion and associated container availability continue to cause delays in international shipments, both imports and exports.
Amazon has issued notifications of shipping delays; Federal Express announced it is reducing service in the wake of COVID-19.
A 5.7 magnitude earthquake struck near Salt Lake City, cutting power to tens of thousands, disrupting flights, closing the Public Health Laboratory and cutting the COVID-19 hotline.

Markets

After the UAW and Detroit’s big three auto makers reached a compromise yesterday to avoid a two-week shutdown, Ford, GM and FCA announced shutdowns of their North American operations anyway.
Fiat-Chrysler Automobiles (FCA) indefinitely shut its Sterling Heights facility, maker of the RAM truck, after two deep cleanings due to COVID-19.
Honda announced that it will close its North American facilities for six days starting March 23 due to weak demand in the wake of COVID-19.
Part shortages forced the closure of Ford’s Chicago Assembly plant.
Only Daimler and BMW remain operating in Europe.
Bloomberg reports that Starbuck’s has temporarily banned customers from bringing in reusable coffee mugs due to COVID-19, blunting the assault on single-use plastics by highlighting the benefits of hygiene and disposability.
In Italy, a 3D printing service bureau stepped in to produce ventilator valves when a local hospital ran out.
Resin demand for Medical labware has spiked.
As of today, M. Holland bookings and billings remain steady to strong; we expect some of the strong demand is at the expense of future demand.

International

Europe closed its borders for 30 days.
France joined Spain and Italy in sealing its borders.
The U. S. and Canada border has been closed to nonessential travel.
The exchange rate for the Mexican Peso exceeded 24:1, the weakest in history, in response to COVID-19 and the collapse of global oil prices.
Forty people have been quarantined at a VW plant in Puebla, Mexico, after being exposed to the virus by visiting trainer from Germany.
Public schools in Mexico will close on March 20, joining private schools and universities.
PE demand in Mexico and Latin America remains strong as supply chains replenish after a run on food and staples.

Our Operations

Mployees are adjusting to remote work life.
We are stepping up internal communications to keep Mployees connected, informed and energized to service clients and suppliers.

Thank you,