The Coronavirus and Chinese New Year

LogoIncluded Distributor Partners,

As I am sure you have heard, the Coronavirus has created a terrible situation on Mainland China.  I realize this has created some uncertainty in the market and  I wanted to give you the best information we have at this moment to help give you an idea what we are expecting next week.  

In order to prevent the Coronavirus from becoming an epidemic and to stop the spread, the Chinese government has quarantined some areas of China ( primarily the Wuhan area), and extended Chinese New Year another week in order to help prevent further spread.   We are still seeing infections increasing daily, but it seems that factories are going to attempt to reopen next Monday, however they are expecting there to be issues for another week or two which could potentially delay production.  Some factory workers are not going to be able to leave their homes due to quarantine to return to work next week.   Upstream suppliers for our factories will face similar issues which could potentially delay production in the next week or two.  There will also be a huge backlog of product needing to be shipped out of China and with Passenger flights to China being canceled all of this lift will have to go through Fedex , DHL, or UPS planes only, so we would expect to see delays of a few days waiting for space on a plane for good to ship to the US.  Once in the air transit times to our office are typically 2 days.

At this time the situation is still very fluid, and we are monitoring it very closely.  We appreciate your patience and partnership and will update you as we get any new information.  Please know that we are working diligently to make sure this has minimal impact on you and your customers.   This only applies to our overseas products, we still have plenty of domestic stock on all of our most popular products including USB drives to serve you and your customers quickly.    

Sincerely,

Alex Harrod
President

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