Corona Virus affects negatively on International Seaway Shipment

Reported from United Nations Conference on Trade and Development, there are about 80% goods which are delivered and shipped through seaway. Seven busiest ports of the world in China while the next ranks are Singapore and South Korea.

Most of consumer goods included cars and food are shipped by sea for which infection from Corona Virus certainly disrupts trade activities outside of China. With aim to limit wide spread of Virus, Chinese Government has decided to temporarily close up many factories and keep workers staying at home. For example, Huyndai Company has stopped operating in South Korean because it has not yet received parts from China.


Source: AFP

(Source: AFP)

Analyst Peter Sand at BIMCO International Shipping Association told CNN (USA): “Closing the world's manufacturing center will affect shipping because it plays a role in coordinating the global supply chain and domestic Chinese market. This also affects many industries and limits the demand for container cargo transport”.

Big shipment branches such as Maersk, MSC Mediterranean Shipping, Hapag-Lloyd và CMA-CGM have shared that they have reduced the number of vessels connecting with China, Hongkong, India, Canada, America and West Africa.

Logistics company Freightos (Hong Kong) even warned customers about the possibility that delivering goods from China would be slow and they should consider switching to air transport or choosing goods from other countries. Freightos also emphasized that goods left in stock after the Lunar New Year will be worse.

Yangshan Port, Shanghai (Source: Vietnam National Shipping Lines)

General Secretary of ICS – Guy Platten said that the decision of blockdade and quarantine some cities means that vessels could not arrived in China because of the process of loading and unloading. Many other ships are stuck in the port and waiting for workers to finish construction and repair.

All members of BIMCO included 1.9000 owners, operators, managers, brokers and agents have announced a reduction in demand from China for goods commonly shipped by sea such as coal, crude oil and iron ore. This has been reflected in the recent decline in crude oil prices.

Logistic group DHL (Germany) also announced “A disruption to international and domestic cargo transportation via air, rail and road". DHL said the blockade had a major impact on the supply chain and industrial production for the automotive, pharmaceutical and high-tech manufacturing sectors. DHL has stopped shipping operations in Hubei province however, DHL said no further changes have been made to the company's operations.


Source: Internet

(Source: Internet)

Meanwhile, UPS and FedEx Express said they continue to operate two-way air transport for China.

The World Health Organization (WHO) has declared a global public health emergency (PHEIC) for an acute respiratory infection caused by the new Corona virus.

 (Source: Vietnam National Shipping Lines)

Other news