COVID-19 Outbreak in Brazil: Effect of Lockdown Measures on Supply Chains

Fragmented Emergency Response Extends Impact of Operational Disruptions

Brazil is quickly emerging as the new epicenter for the COVID-19 outbreak. This has been met with a fragmented containment approach between federal and state governments. The federal government’s minimal efforts have conflicted with state-enforced quarantine and business closure measures. While necessary for public health, these measures have considerably interrupted supply chain productivity, primarily through decreased staff capacity. The effects of the outbreak have also impeded on logistics operations between Brazil and neighboring countries. While there are no regulatory impediments to cargo shipments through land, sea, and air routes, the current mismanagement of the crisis jeopardizes the productivity of Brazilian logistics operators working across the region. Regional pressure may encourage a strengthened state response in the form of a complete lockdown of commercial activity. This Resilience360 Special Report analyzes the impacts of COVID-19 on the export-oriented production sectors of the Brazilian economy as well as logistics movement within the continent. The report also examines the regulatory environment amid the crisis and elaborates on what supply chain managers can expect as the situation evolves.

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