Slow season of shipping is The Chinese Spring Festival season, many establishments are closed for up to four weeks this includes employees going home to their cities and offices are slowing down. The Chinese New Year is observed as the largest movement of people, they travel around to their destination. This has caused fears of acceleration amount of transmission of virus.
As of this writing, global death toll is over 1000 due to Coronavirus and the virus has spread to some. The short and potential longer-term effects of Wuhan Coronavirus below:
1. SHORT TERM EFFECTS OF CORONAVIRUS ON SHIPPING.
Delay in Manufacturing: Usually, factories or establishments in China may take an average of 3-4 weeks to launch after the Chinese New Year era. Now, this period will most likely be prolonged because of travel restrictions that was implemented, and this means production will be affected.
If there is still no cure for this virus and it gets worse, possibilities are factories may be closed for a longer time and this means delays and producing products and delayed deliveries for many shippers. The Chinese New Year was already extended in Shanghai, Jiangsu, Zhejiang, and Guangdong provinces, until February 10th.
Increased Empty Cruising: During the Chinese New Year the shipping lines already declared blank sailing schedules because of its less demand. This is expected to grow daily based on the restriction by the global community.
Decrease manpower of port operations: China ports and in overall Asia are remained opened while in SARS outbreak. There are vessels that will be given a priority and those are vessels carrying aid supplies for the outbreak. In the worst case scenario, there is a threat of quarantine at ports that stops operations totally.
2. LONG TERM EFFECTS OF CORONAVIRUS ON SHIPPING.
Lesser Contract charges: The contract term will have a big effect if the manufacturing closures will be extended. This will cause a very weak market. Carriers can’t push for multiple rate increase before the contract negotiation because of the outbreak.
Revenue losses and affected profits: Lower rate levels will have a greater negative impact on carriers’ revenues.
Effects on the China-U.S. Trade Deal Phase One: China assured to obtaining U.S. agricultural products. Due to potential declining domestic request, China may not justify this promise, which in return may have some significant effects on the trade deal as a whole and also on U.S. agricultural exporters.
Due to the influence of n-Cov, FedEx & UPS in China will postpone the resumption of work. Nearly 12 provinces (Shanghai, Zhejiang, Jiangsu, Jiangxi, Chongqing, Yunnan, Heilongjiang, Hebei, Shandong, Guangdong and Fujian) announced the notice of delayed resumption of work, in which Hubei suspended all services.
Tips in Managing Shipping
It’s important to always have communication early and frequently with anyone that may be affected by the issues you are facing, especially in shipping and delivering. These are few tips for managing your shipping during this period:
· Notify your clients of the delays due to the outbreak,
· Connect directly with your dealers and warehouses to be aware of any changes to the current situation - even if they’re not fully functioning, most will have customer service teams to assist you.
· You can use express courier services if you want to avoid delays.
· Provide reachable customer service so they feel they can keep updated of what’s happening.
If you need to send emergency personnel documents, articles or medical materials, please make remarks and contact the Chinese customer service hotline: FedEx 800.988.1888/400.886.1888 and UPS 400-820-8388 for emergency treatment.
We will inform you of any further changes or growths as coronavirus continues to affect Wuhan and all of mainland China.. In the meantime, you can still have your shipments with us on EzeeShip.
Comments