The outbreak of the unprecedented situation caused by the Covid-19 virus has put most the sectors of the economy out of drugs. Even the shipping industry is experiencing a robust downturn.
The changes in consumption and shopping patterns activated by the pandemic, including a surge in electronic commerce followed by lock down measures have of course led to a hike in import demand for the manufactured goods, an over sized a part of which is moved in shipping containers.
As per the Exim Trade Data, freight rates have extended significant heights during Covid-19. Further with the lessening of lock down measures and ranging speed recovery all across the world, and stimulus packages supporting the demand of the buyer, inventory building and front loading within the uneasiness of the new Covid-19 wave, led to an extra surge in carry trade flows.
The import export trade data are the results of factors – increasing demand, shortage of containers, saturated ports, and too few ships and dock workers. Of these aspects have contributed to the squeeze on the transportation capacity on every freight path. Moreover, the recent Covid-19 outbreaks in Asian export hubs like China have made the business poor.
Export will soon be restored – Because of such a large rush at the retail level, vendors are faced with choices – halt the trade, raise prices or absorb the value to pass it on later all of which might effectively mean more costly goods. Higher freight rates are more painful for the businesses that move clunky, low-valued items like furniture and toys.
Companies are attempting their best to figure round the higher costs. Some have end exporting to certain locations while others have started exploring for goods or raw materials from nearer locations. The longer this high shipping freight lasts, the more companies will take constructive measures to shorten their supply chains.