CALIFORIA COVID-19 UPDATE
SATURDAY, APRIL 4, 2020
STATEWIDE UPDATE

  • COVID-19 Peak in California: Per Governor Newsom’s Thursday COVID-19 update, current models are indicating COVID-19 peaking in California in mid-May.
  • Schools: The state has directed all school districts to remain closed and continue distance learning through the end of the academic year.
  • California Confirmed Cases: 12,507 confirmed cases with 279, this is an  (4/3/20 10:01pm PT)
  • Cloth Face Masks: Most counties have now either shared their own recommendations for wearing masks when leaving a place of residence and/or shared the CDPH guidance. At least one county has indicated they may consider making this an order. 

NEW ORDERS

  • Alameda County - Blanket Orders for COVID-19 Positive Individuals to Isolate and their Household and Close Contacts to Quarantine: READ HERE (in effect until further notice)
  • Amador County - Extended Stay at Home Order: READ HERE (Effective immediately and in effect until 11:59 p.m. on April 30, 2020)
  • Contra Costa County - Health Order Mass Quarantine Order (close contacts of COVID-19 positive individuals): READ HERE (effective at 12:01 a.m. on April 4 until further notice)
  • Contra Costa County - Health Order Mass Isolation Order (isolation of COVID-19 positive individuals): READ HERE (effective at 12:01 a.m. on April 4 until further notice)
  • Monterey County - Extending Shelter at Home Order with Clarifying and Further Limits on Essential Business Activities : READ HERE (effective April 3 until 11:59pm on May 3); version highlighting changes: READ HERE 
  • Requires a Social Distancing Protocol to be posted by April 8 at all Essential Business Facilities. Appendix A: READ HERE 

NOTICES UNDER CONSIDERATION

  • Del Norte County - "We think that it is reasonable for persons to wear masks or other face coverings when they are outside, for at least the foreseeable future. This may become an order rather than a recommendation depending on what is decided by the state public health teams.” READ HERE 
  • Mendocino County - "All Essential Businesses are encouraged to prepare and post a “Social Distancing Protocol” for each of their facilities in the County frequented by the public or employees.” Does not currently state that this will become an order. READ HERE 

NEW CALIFORNIA STATE ACTIONS

  • Governor Newsom Issues Executive Order to Expand Telehealth Services
(April 3): READ HERE  
  • Order allows health care providers to use video chats and applications to provide health services without risk of penalty
  • Order aligns with federal Health and Human Services guidelines and waivers issued in response to COVID-19
  • Governor Newsom Issues Executive Order to Protect Consumers from Price Gouging (April 3): READ HERE 
  • Order comes in response to COVID-19 pandemic to limit price increases from sellers on critical items, such as food and medical supplies
  • At Newly Converted Motel, Governor Newsom Launches Project Roomkey: A First-in-the-Nation Initiative to Secure Hotel & Motel Rooms to Protect Homeless Individuals from COVID-19 (April 3): READ HERE
  • State is securing thousands of isolation rooms in hotels and motels for extremely vulnerable individuals experiencing homelessness to help flatten the curve & preserve hospital capacity
  • California is the first in the nation to secure FEMA approval for 75 percent federal cost-share for this life-saving mission & create a model for other states
  • National Alliance to End Homelessness: “Project Roomkey sets a strong example”
  • Chef José Andrés’s World Central Kitchen to provide meals to individuals experiencing homelessness living in some hotels

RESOURCE LINK

NEW -  Governor's Office of Business and Economic Development COVID-19 Page:  ACCESS HERE  

COVID-19 IMPACTS TO FREIGHT/PORTS/BORDER

General Updates
As of now, container back-up at the ports isn’t as much of an issue as it is further down the supply chain. But as time goes on, containers will build up at port terminals and this is cause for concern.

Once containers start building up at the terminals, there will be congestion issues getting the containers that do have somewhere to go out of the port easily.

Southern California still has some available warehouse space, about 3-5%, but with very little cargo moving out to stores, this will fill up quickly.

In the Bay Area and Central Valley, warehouse space is at capacity and so they are looking for other storage options.

One new container storage location is the Ports America terminal at the Port of Oakland, where the Grand Princess was docked.

Warehouse space shortages are leading to issues of abandoned cargo along the supply chain, which has further cascading effects:
  • Trucks are bringing containers on chassis to warehouses, but with nowhere to unload the goods, the containers on chassis are being left behind to become “warehouses on wheels”. This could lead to a shortage of chassis.
  • No one has incentive to pay to lift the containers off the chassis, to pay security to guard the contents of the container, to bring the empty chassis back to the port, or to come and pick up these “warehouses on wheels” to bring somewhere else.

One example of goods that are not moving in the supply chain are Easter imports. Many of the stores that sell these are closed and there is very little market for Easter merchandise now anyway, so they said “no one is going to see, sell, or buy Easter merchandise”
  • This could be an issue with back-to-school merchandise as well, depending how long schools are closed and also people’s ability to purchase goods with unemployment levels potentially reaching 25%.
  • Basically any goods that go to malls, stores (besides grocery and pharmacy), and mom and pop shops are not moving out of warehouses. However, this is difficult to track because the businesses are private.

While there is still a lot of cargo coming in now, cargo volume will decline as ships cancel their sailings due to reduced demand. There should be a small surge as China comes back online, but expect a fall off of imports in general.

Another concern is keeping the workforce healthy and having enough PPE. They have enough for now (400 gallons of hand sanitizer in Southern California, for example), and are doing everything they can to keep employees healthy, but it is still an issue that could further cause the supply chain to erode if people cannot work because they are sick.

Port of Stockton: Port operations continue. Continued focus on PPE use. Port staff dispersal, including working remotely, complete.  

Port of West Sacramento: Nothing significant to report.
Federal Highway Administration Issues Notice Allowing for States to Permit the use of Food Trucks in Rest Areas to Serve Commercial Truck Drivers READ HERE

General News via MARAD:
Overweight permits on interstate highways - According to the Food Industry Association, most states have relaxed their weight restrictions to allow loaded trucks weighing over the federal 80,000-pound limit to travel on interstate highways within the state (states control weight limits on non-interstate roads), with overweight allowances ranging from 1,000 pounds to 8,000 pounds or more. READ HERE
Demurrage Debate - Shippers and forwarders are calling on carriers and terminals to exercise restraint in their collection of detention and demurrage charges as the export containers that piled up in China during the February factory shutdown begin to land at terminals in Europe and the United States, where most of the populace is under lockdown. The containers will arrive at a time when stores are closed to limit the spread of coronavirus disease 2019 (COVID-19) and consumers are confined to their homes. To its credit, the industry is marshalling a response. Container lines are urging cargo owners to pick up their containers in a timely manner and return empty containers. The Ocean Carrier Equipment Management Association (OCEMA) said it was concerned with the availability of chassis, particularly in relation to inland movements. Container lines are also offering shippers options to mitigate demurrage fees. READ HERE
Global GDP reduced by one percent in 2020 - A briefing issued by the United Nations Department of Economic and Social Affairs (DESA) forecast the global economy could shrink by almost one percent in 2020. READ HERE
LNG prices dropping - Since beginning of 2020, Asian LNG prices have dropped almost 50%, with March spot prices falling below previous record low of $3.65 / MMBtu. READ HERE