News / Supply chain delays expected after earthquake hits Myanmar

Source: X, @jooonyiie

Today’s earthquake in Myanmar won’t have devastating impacts on supply chains, but shippers should expect delays.  

At around 1.30pm local time, a 7.7 magnitude earthquake was recorded. At least three people died when a mosque partially collapsed and the country has declared a state of emergency.  

Despite the epicentre being some 16 km north-west of the city of Sagaing, the aftershocks reached as far as Bangkok, in neighbouring Thailand, where three people died when an under-construction high-rise building collapsed, with upwards of 90 people missing. 

According to one eyewitness speaking to Skynews, there was no warning before the tremors hit. 

CEO of Vespucci Maritime Lars Jensen warned stakeholders: “It should be expected that this will have disruptive impact on port and inland logistics in the country.”  

Myanmar National Airlines has cancelled some flights, but AirAsia confirmed there had been no cancellations of daily flights to Myanmar and Thailand – although it warned of delays.  

Bangkok’s main cargo airport and a popular transhipment hub for sea-air volumes, Bangkok Suvarnabhumi, has so far seen 254 some 47%, of its departure flights delayed and five cancelled, according to FlightRadar. The average delay is around 45 minutes, it said. 

FlightRadar is reporting an average of 60 minutes’ delay for take-offs at Bangkok Don Mueang International Airport (DMK), which is closer to the earthquake’s epicentre, and a disruption index of 5.0. Anything between 3.5 and 5.0 is described as “major problems with long delays and several cancelled flights”. 67 flights – 20% – have been delayed today, but none cancelled.  

For departures at DMK, FlightRadar warns of 68-minute average delays and 5.0 disruption index. 154 flights have been delayed, 46% of departures, but none have been cancelled.  

Other airports in the South-East Asia region are also reporting delays, such as at Da Nang, Surabaya, Penang and Kuala Lumpur.  

There are also possible concerns for China’s belt-and-road initiative, because of Myanmar’s position as a corridor between China and South-east and South Asia and as an important overland route for China’s oil and gas imports from the Middle East – though impacts are yet to be assessed.  

While today’s tragic event, so far, has seemingly had little impact on cargo operations, shippers are again reminded of the fragility of supply chains and the importance of multiple sourcing locations.

Supply chain intelligence platform Xeneta advised today that, in anticipation for these natural and unpredictable events, shippers “must evaluate their preferred routes and determine which carriers can increase shipping in anticipation”.  

“This allows for flexibility to scale back operations or shift modes during tumultuous times. It can also be beneficial to balance between local suppliers to reduce transportation risks and global suppliers to diversify geographical risks,” it explained.  

Xeneta also noted that for carriers, such events will often trigger a surge in demand for crucial commodities such as home repair supplies and essential goods.  

It further warned that damage to manufacturing facilities, warehouses, and distribution centres could disrupt production and in turn, supply shortages, “resulting in heightened price volatility”.