Here is the latest update on the outbreak of Coronavirus and the impact it’s having on global trade.
Despite new cases of the virus being discovered in China the country is slowly returning to work. Factories and Ports have re-opened, and manufacturing is resuming. Rates have remained steady so far for air & ocean services. Capacity is available, but there is some congestion at the terminals due to a lack of manpower. This should improve as more workers return next week. European passenger airlines have taken a cue from their US counterparts and reduced flights to China. Similar to the US market, passenger capacity has been replaced by extra freighter lift.
We have not seen any significant changes in air freight rates as of today. Should a surge in demand take place as more factories come on-line rates could rise quickly without much advance notice.
Steamship lines are taking bookings and capacity is not an issue at this time. To guarantee a sailing our Partners have requested at least three days’ notice to secure space.
Over the past week the virus has moved to South Korea. There are indications airlines will be reducing passenger capacity to Seoul and other smaller Korean cities in the near future. Cases of the virus are now reported in Italy – so we are monitoring the situation in Europe as well.
This situation remains fluid. Outbreaks are occurring in new countries. Please check with your Alba Sales Representative or one of our offices should you have a specific question about your shipments – or upcoming logistics requirements.
- Posted by Joe DeSilvetri
- On February 26, 2020
- 0 Comments