The novel coronavirus crisis is impacting the global supply chain. Though Chinese authorities are granting most approvals to resume work, a return to normal is far from clear. Below we list some of the implications -
Carriers are cancelling calls at Chinese ports. This reduction in capacity will disrupt supply chains and increase rates.
Impacts are being felt in the reefer container trade where a shotage of plug in spaces, in some Chinese ports, are forcing carriers to implement surcharges and to divert cargo to other ports. These diversion costs are for the account of the cargo.
Labor shortage remains an issue. A lack of truck drivers is slowing down the movement of containers and clogging ports.
A steep reduction in flights to and from China have dramatically reduced capacity and are sure to increase rates