That’s a pretty frail national infrastructure if all logistics within China will be impacted so heavily by having this sporting event.  I hope it isn’t so frail.  If there is a problem, perhaps it will be isolated to the areas immediately impacted by the Olympics.

Shipping delays stand to have a significant impact on companies depending on those goods.  They’ll need to order extra safety stock – having to cover the carrying costs.  There will probably be a need to rush things out of the country immediately afterwards in order to catch up for those things that have gone out of stock.  And there will be competition amongst every other company needing to do the same thing.  What type of financial impact will this have on western economies?  We are talking about a one-month gap in shipping.

What about perishables coming from China?  Will they ship?  Will the companies producing them be hit with a sales vacuum for that month and have to trash their products? 

Most importantly, what does it mean for your business?  Perhaps you need to start with an audit of all your suppliers in China and the carriers that will convey your goods.  Whether these are finished goods, components or raw materials, you should know what your impact may be.  Furthermore, if you ship into China, what is the potential for delays? 

It may be too late for some companies.  I spoke with one company that had been analyzing the potential impact on their business for some time.  They are prepared.  Will you be?