HOW THE THE OUTBREAK OF CORONA VIRUS HAS AFFECTED THE SHIPPING INDUSTRY.
Shipping involves the movement of goods and services from one port to another using different methods and it plays a pivotal role in the economy of almost all nations since it’s the trading link between any trading parts
The shipping industry has slowed down due to the deadly outbreak of corona virus which has sent the global shipping industry veering off course with transit rates failing to record lows as ships are turned away from ports.
All the shipping segments from the lowest to the highest part have been hit by the economic impact from factory shutdown and travel restrictions put in place across all the affected areas to control the spread of the virus. Since the shutdown struck, the affected shipyards have been deserted and the losing owners and ship builders money on idle vessels awaiting service for example one of the biggest shipyards in Jinjiang near Shanghai in China has had two successive applications turned down by the local government thus the business is being greatly affected since it’s not operating at all.
This corona virus has to a larger extent affected the international shipping services in all sectors for example there is;
Reduced air freight – A number of airlines have suspended a number of airlines to the affected areas and it is expected that there will be further reductions in the industries and suspensions flights as the coronavirus continues to run its course, that alone will likely push up air freight prices.
Global mail slowdown – there have been flight suspensions due to the corona virus and it have also taken a toll on global postal services, most postal service companies have experienced signal difficulties in getting their parcels, express mail items and letters to the affected areas.
Sea freight – unlike air freight sea or ocean freight since it’s a bit independent to passenger traffic it remains a bit not much disturbed by the corona virus but it doesn’t mean that it is free or not affected by the virus.
This coronavirus has also forced the shipping industries to reduce the courier capacity hence by doing this strictly means there is no more excess baggage in the ferrying of goods to and from the affected areas.