Coronavirus Impact on Global Shipping Too Big to Ignore
While concern around the globe has vacillated between nuisance and panic, the effects of the recent coronavirus outbreak are becoming much clearer — and more serious — for the global economy.
Guidance from supply chain experts indicates Chinese factories won’t resume production for 3-4 weeks, which would have a significant impact on international shipping.
Dreary Supply Chain Advisors, with offices in the U.K., China, India and Singapore and a 50-year history of global maritime research and consulting, says the health crisis could create empty container shortages in Europe and North America, which could quickly lead to swings in freight rates and new carrier charges.
Dreary’s most recent advisory indicates that ocean carriers and ports dependent on box trade will see significant under-utilization and losses this month, with trans-Pacific bids delayed by carrier office closures and inventory runs-down in destination countries.
“The ripple effect from this disease will have huge implications on the entire supply-chain,” says Grovara CEO Peter Groverman. “Fingers crossed the virus is contained prior to a mutation – and we see additional fall-out.”
Shipping rates have already plummeted in the last month, and Chinese ports have seen incoming cargo rerouted and reduced calls to port. These issues aren’t even the only concerns. Cybercriminals are now targeting the global shipping community with malicious Microsoft Word documents
Hackers used emails about ways to prevent coronavirus contraction in Japan as a way to spread Emotet malware to unsuspecting victims while others sent out fake emails from the World Health Organization or Centers for Disease Control and Prevention to trick people into giving away their email account passwords.
The coronavirus death toll has surpassed 1,100 worldwide.