The outbreak of the coronavirus is presenting significant challenges to international supply chains. As factories attempt to accelerate production, the list of logistical question is growing.
Despite tight controls on access to cities across China, our agent partners are fully functional in Central, South East and South China.
While demand is expected to remain sluggish as Chinese manufacturing recovers, here some of the implications -
Higher initial production output to make up for lost production
Ocean and Air shipment volumes will steadily increase due surging export orders
Increased conversion of ocean shipments to air cargo, which could sharply increase market demand and drive up rates
Significant ocean rate-increases as volumes recover along with acute space shortages throughout the summer of 2020
Additional surcharges (reefer) levied by ocean carriers, as well as stronger spot rates for backhaul traffic
We continue to monitor the impact and welcome your questions.