You have guessed it, Chinese logistics operationsare undergoing major changes due to the Coronavirus
Chinese officials are claiming container ships have left some of their major port facilities filled with only 10% of their capacities and several vessel departures and arrivals have been canceled and rerouted until the situation gets completely resolved. This significant decrease in the volume of goods exported and imported from China will evidently have an impact on industrial production. All steamship lines are preparing to face financial consequences due to this viral outbreak.
All of these canceled shipments will inevitably delay and reduce deliveries to North America and around the world. The vast majority of retailers will have to face a critical slowdown in their supply of raw materials by the spring period.
Here are some facts :
- More than 50 trips have been cancelled from China since the beginning of January
- At least one container ship having the capability of moving more than 20000 containers has been confirmed leaving Shanghai with only 2000 containers for Europe
- The Coronavirus is costing the shipping industry $350 million per week in lost cargo volumes
- Chinese travel restrictions are affecting shipyards, sea operations and industrial factories globally
- Some sources of ocean data providers have revealed that a total of 350000 containers have been withdrawn from international trade causing a massive deficit in demand and citing the cancellation of several ocean vessel departures
The Coronavirus is indeed slowing down trade between China and other countries. This situation affects all of the logistics players and no one seem to be able to remedy the closure of certain facilities in China, preventing goods from being shipped internationally. Nevertheless, our team will look into finding alternatives to simplify your logistics workload thru our partnerships with key Chinese players. Rest assured, we are ready to help you face this unfortunate situation.