The current outbreak of Coronavirus has affected the world in many different ways. One of the areas it has had the biggest effect on is the global shipping industry. This is a sector of the business world that has had to make a large number of adjustments. It is doing so in order to keep pace with constantly changing conditions.
The Freight Industry is in a Major State of Shock
There is no question that the industry for freight services is currently experiencing a series of extreme disruptions. These have taken several forms, some of the more severe than others. One thing is certain: The disruption to air, land, and sea shipping has been sudden and considerable.
There Are Now Two Competing Rates of Speed for Imports
One of the most sudden and characteristic changes that have been caused by the outbreak of Covid-19 has been the development of two competing speeds for imports. These two speeds concern the rate at which certain types of goods earmarked for importation can be safely and efficiently delivered.
Certain types of business owners, such as clothing and car suppliers, seem to prefer to delay the reception of these types of goods. This is largely due to the fact that this type of cargo is largely headed to brick and mortar stores that are currently closed during the Covid-19 lockdown.
On the other hand, business owners who are keen on importing essential household and PPE goods prefer to have them shipped out as soon as possible. This is an obvious source of conflict that is leading to major arguments behind the scenes. It’s becoming a question of who is willing to ship these goods and how quickly they can do so.
A Severe Freight Cargo Bottleneck May Be in Store
There are now severe arguments raging over the type of goods that need to be prioritized for shipping as well as the rate of speed they can or should be shipped at. This is leading to fear that a bottleneck may soon develop that could paralyze the shipment of any and all types of goods, regardless of their origin or purpose.
The issue concerns members of the shipping industry such as carriers and forwarders. It also concerns officials and workers at port authorities and marine shipping terminals in every port of the world. If too many importers fail to ship cargo or claim it when it arrives, a massive case of congestion is bound to become the norm.
If such a bottleneck develops, there could be larger issues to face than a simple congestive back up at local and global ports. These may also be accompanied by a devastating series of inland equipment shortages. If this occurs in tandem with a bottleneck, it could lead to an unwelcome slow down of the broader supply chain.
Business Owners Need to Anticipate a Reduced Freight Capacity
Along with a potential slowing down of the shipping industry, there may also be the issue of reduced freight capacity to deal with. Business owners will need to keep this potential outcome in mind as they plan for the importation of needed equipment or the export of goods that have been ordered by their customers.
The decline in the availability of air freight couriers has led to soaring prices in many parts of the world. In a bid to counteract this developing condition, some passenger airlines have begun to take on cargo freight in order to keep their profits at an acceptable level.
Meanwhile, the maritime cargo shipping industry has taken arguably the biggest hit of all. Many nations, including major cargo receivers such as Australia, are imposing severe restrictions on receiving freight by sea. This is a sector your business may wish to avoid for some time.
The Time to Make the Necessary Adjustments is Now
If you are the owner of a company that depends on global shipping, there is much new info that you need to absorb as soon as possible. This is an area where conditions are in a constant state of flux. Keeping up to speed on all of the fast-breaking new developments is the best way to ensure the survival of your business.