Based on current communication from our overseas offices and Carriers here is the latest update on the outbreak of Coronavirus and the impact on shipping to and from China.
Except for Wuhan businesses throughout the rest of China are returning to work this week after the extended Chinese New Year. Port facilities in all major Chinese cities have reopened. Wuhan is expected to see some businesses re-open after February 20th.
Factories will start shipping later this week and early next week now that operations have resumed. Due to the extended closure some freight that would have traveled ocean will be converted to air to meet inventory demand in the US. Most US Passenger Airlines have suspended service until mid-April. Cargo will have to fly on Freighter Aircraft since there will be no lower deck passenger capacity in the market. Depending on the surge in demand for air freight rates may spike to peak season levels (or even go higher) in the short term.
Steamship lines are taking bookings, and capacity does not seem to be an issue at this time. As more factories come online, we may see a surge in volume and ships may be booked to capacity well in advance of sailing creating delays in supply chains. We are monitoring this situation very closely to make sure we can protect space for our Customers. We will also monitor rates. It is impossible to rule out a short-term rate increase due to a spike in demand.
The situation in China is very fluid. 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.
We are monitoring the situation carefully and will send updates as we received additional information from our overseas offices and Carriers.
If you have any questions or concerns, please contact your Alba Sales Representative.
- Posted by Joe DeSilvetri
- On February 19, 2020
- 0 Comments