Covid-19 Current Shipping Industry And Logistics Problems

Since the start of the COVID-19 virus spread at the beginning of this year, the world continues to adapt and face one of the biggest health crises in our time. This global pandemic has wreaked havoc on many different facets of the world, including the economy, international trade, and shipping internationally.

During this time, we are aware and thoughtful of the many communities and individuals that are affected in negative ways. We are thankful for healthcare workers, first responders, and supply chain professionals that are working hard every day to overcome these setbacks. We also understand how some industries on a global scale have been altered and are facing increasingly new problems during this COVID-19 crisis.

The Air Freight Industry

The airline industry has been greatly impacted due to the restrictions and guidelines needed to ensure safety during the pandemic. There has been and will continue to be, a significant decrease in revenue if COVID-19 cases are still on the rise. The IATA estimates that this loss in revenue may surpass $350 billion soon. All industries, large and small, have been affected by this pandemic, but cash flow-dependent industries, like the air freight industry, will have an especially hard time enduring through the crisis.

The Ocean Freight Industry

The ocean freight industry has been affected in different ways. The fluctuations in demand is one of the biggest problems they face. Because the demand has been reduced, the ocean freight industry has reduced their capacity up to 50% in some cases. The Transpacific shipping lane has started seeing blank sailings. Shipments from China, Malaysia, and Vietnam used to be weekly, but have not been reduced to bi-weekly or once a month in some cases.

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