COVID-19 has had a devastating effect on people’s lives, families and communities. Organizations are operating in unfamiliar territory as worldwide reaction develops. Critical information on the properties of this new virus and its implications for global corporate activity is difficult to assess and changes on a daily basis.
The ability of shipping services to transfer food, electricity, and medical supplies across continents will play a crucial part in defeating this epidemic in these unusual times. To respond to this shifting circumstance, shipping businesses will need to become more flexible and adaptable, focusing on developing effective reaction strategies and plans. Many countries throughout the world went into lockdown and enforced extraordinary containment measures to prevent the Coronavirus sickness (COVID-19) from spreading. These constraints gradually altered social behavior and worldwide mobility patterns, causing social and economic activity to be disrupted.
Despite the fact that the shipping industry has shown remarkable strength in the face of the pandemic, the crew change crisis, volatile trade volumes and capacity limits continue to have severe consequences. And, while the pandemic has had a minor influence on marine claims so far, that doesn’t guarantee things will be easy in the future.
Maritime transport for trade and development is critical, with over 80% of global trade by volume and up to 70% of its value transported onboard ships and handled through seaports around the world. As a result, shipping can be seen of as a barometer for the global economy. According to the United Nations Conference on Trade and Development (UNCTAD), overall volumes in 2018 were expected to hit an all-time high of 11 billion tonnes. For the year 2019–2024, UNCTAD has forecasted an annual average growth rate of 3.4%. However, due to the coronavirus pandemic, which resulted in a 3% reduction in global trade values in the first quarter of 2020, this projected rise may need to be altered.
What impact does COVID-19 have on the shipping industry?
The world economy has been badly impacted by the coronavirus epidemic, which has had a country-wideimpact on us. Shipping is a major industry in almost every country in the world, and it is an important aspect of practically every industry’s supply chain. During the pandemic, we rely entirely on the shipping industry to convey food, medicine, and other essentials across international borders. And, in order to secure cargo, the shipping industry is completely reliant on production output. The coronavirus epidemic has put a strain on the shipping industry, with lockdowns and closed factories.
How to navigate through the Corona storm
The coronavirus pandemic is a situation that effect the lifestyle of almost everyone. As a logistics provider, we must prioritize proactivity, adaptability and the development of effective methods. However, here are some tips that you can do as a shipper to guarantee that your logistics flow runs smoothly.
1. Maintain open lines of communication with your manufacturer and customers.
Keep in touch with your manufacturer to stay up to date on the manufacturing schedule and to see whether the rate of production is slowing down. Inform your logistics supplier of the quantities of your expected products and inform your clients of any potential delays.
2. Planning is everything – book your shipments early
Many logistics partners are unable to make last-minute arrangements due to the container constraint. To ensure space for your items, arrange your shipments as soon as possible, preferably a few months ahead of time.
3. Consider an alternative shipping service and route
Choosing a multimodal transportation service with somewhat longer transit times can sometimes pay off because traditional services with shorter transit times are sometimes overbooked. Inquire with your freight forwarder about the possibility of utilizing a different shipping provider or route.
- Posted by WiserTech Solutions
- On February 12, 2022