What to Know About Coronavirus and Its Effects on the Shipping Industry

How Coronavirus is Affecting Trade with China

After the outbreak of the SARS epidemic in 2002, medical experts called for stricter quarantine laws regarding international travel, and thus the shipping industry, in the case of a future outbreak. These regulations are now being put into place as coronavirus spreads through the Wuhan province in China. This quarantine is affecting factories in China as well as those in neighboring countries whose employees have been unable to return to work after visiting family in the Hubei region during the Lunar New Year. Reduced production, coupled with concerns for the safety of operating crews on board sea and air vessels, has resulted in significant disruptions for the shipping industry.

Coronavirus Quarantines and Reduced Exports

Many factories around China have been temporarily closed following the outbreak of the virus, with some not anticipated to open until March 1. With these facilities shuttered, exporters can expect to see similar effects as with the Lunar New Year, which sees the pausing of production for nearly three weeks annually. Delays are typically expected to continue for several weeks following the holiday as well but are being exponentially compounded by the effects of coronavirus. Major corporations, including Hyundai Motor, Deere & Co., and PSA Peugeot Citroen have all been affected by these closures and supply disruptions.

Sea Freight Shipping Demand

With limited production, demand for shipping containers is dropping rapidly, resulting in low freight rates. Sea-Intelligence, a maritime analyst, predicts a loss of $300-350 million weekly for carriers. Further, according to maritime data provider Alphaliner, major Chinese ports have seen a 20% decrease in ship calls since January 20. To combat this, sixteen Chinese ports are offering reduced rates in an attempt to lure liners back in. In contrast, nearby ports like South Korea’s Busan are experiencing spillover and rising container capacities. If these levels continue to rise, ports’ efficiency will be compromised, adding to potential delays.

This reduction has also led to lower demand for oil. With prices seeing a decline beyond the expected from Chinese New Year, refiners are being driven to negotiate and limit crudes runs.

Effects on Air Cargo

Air travel to China has been suspended by nearly all airlines, and flights to and from Hong Kong have also been halted. While some importers anticipated delays on shipments for the Lunar New Year, they are now experiencing disruptions beyond their predictions. Where ocean freight is seeing reductions in shipments, air cargo space is now extremely limited. Cargo on passenger flights has been redirected to available freighters, but these flights have also been drastically reduced or suspended entirely out of concern for the crew’s safety.

Short- and Long-Term Effects

With imports redirected and substantial disruptions in production and exporting, businesses should anticipate delays until mid-March. Experts agree that long-term consequences remain difficult to determine at the time; however, if the SARS epidemic is any indication, Chinese markets will manage to recover once coronavirus has been contained, resulting in only short-term interruptions.

The shipping industry can be unpredictable. Keep track of any delays or disruptions that might affect your business with SiShips.

Learn more about SiShips can simplify your freight experience.

Keep shipping simple with our calculators, converters, and more.

Managing your business takes a lot of time, and spending an afternoon Googling complicated acronyms or trying to calculate your shipment’s volume weight by hand should be the last thing on your to-do list. That’s why we’ve put all of our tools in one convenient place, ready to quickly answer any questions you might have throughout the shipping process. Just as SiShips guides you seamlessly through each step of the freight experience, our shipping resource center leads you to the knowledge you need.

Conversions Resources

No matter how good Gary in your shipping department may be at math, running numbers all day can be tedious. That’s why we’ve brought together three of our favorite tools that avoid human error and help save Gary time to work on more important things.

Found within our shipping resource center, the Currency Converter can quickly calculate the trade value for two different currencies. Powered by Bank of America, it offers always-accurate exchange rates. Next door, the Metric Converter is an easy way to convert your numbers, whether volume, pressure or another unit, into whatever system of measurement you may need – all with one click of a button. That means you can spend less time dividing out your metric tons and more time multiplying your margins.

Our favorite tool, though, is our Volume Weight Calculator. Simply input the dimensions and weight of each of your boxes to quickly determine the total volume weight of your shipment. With a precise calculation, you can be assured that your shipment costs are accurate too. Since we love saving time and money, this one makes us really excited. We’re pretty sure Gary would agree.

Information Resources

With six categories of containers and different size variations in each, you might feel spoiled for choice when it comes to choosing freight containers for your shipment. To help you narrow down your options, our Air and Ocean Containers tool gives you all the details on dimensions, volume, weight, door openings, and more. It’s all the information you need, found right within our shipping resource center, to become a true container guru.

We know most things are easier to understand when they come with a picture, so we’ve made an infographic to help you compare the eleven different Incoterms, or international terms of trade, that might apply to your shipment. Say farewell to the days of trying to remember if your shipment was DAP or DDP – and what that means for you as the seller. We’ve got it all laid out for you, with fun colors, through every stage of the shipment process.

As our infographic proves, acronyms aren’t just for texting teenagers anymore. If you’re scratching your head about what ICCO could possibly mean, we’ve got you covered. Explore our Acronym List for definitions of over 100 acronyms and terms, from BOTB (“British Overseas Trade Board”) to HVR (“Hague Visibility Rules”) and yes, ICCO, or “International Cocoa Council.”

Similarly, check out our list of Hazmat Definitions to make sure you don’t run into any trouble shipping fireworks (Class B Explosive) to France for Bastille Day because your hazmat certification is out of date. With this easily accessible list of terms, you’ll be sure to feel cool and confident with all of the shipping lingo.

Still need more information? Stay on top of industry news via our list of reputable resources, and dig deeper on trade information, including customs and economic indicators, with easily accessible links straight to the source.

World and Culture Resources

The world of international shipping is just that – international. This can make it hard to keep track of all the different elements that might affect your business. For example, anticipating Chinese New Year can help you avoid costly shipment delays, so make sure to keep track of relevant world holidays. Understanding current storm patterns can help you effectively communicate with your business partners – that why we offer a resource to stay up-to-date on the weather. Accidentally calling your shipping partner in Amsterdam at 3 in the morning is never a good idea, so we’ve included a world clock, and if you need the country calling code for the Netherlands we’ve got that too.

Plus, we’ve gathered maps of both the world and international sea ports so you can know just where your shipment is and help your daughter with her geography homework – it’s a win-win situation. With these resources right at your fingertips, you can avoid the unexpected and the stress that comes with it.

Government Resources

International shipping means international governments, customs, and laws. Our government resources help you stay knowledgeable about how these might affect your shipment and who to get in touch with if you need more information. For example, keep up to date with the Federal Maritime Commission to be aware of all things marine, and explore Forwarder Law to keep informed on current legal cases within the freight shipping world.

Need to do a little diplomacy? Easily search for the contact information of any international embassy or explore our curated list of worldwide customs contacts so you can put out fires without having to search online for a phone number first. It’s the next best thing to having the embassy on speed dial.

How can SiShips be a resource for you?

We understand how important it is to simplify the importing and exporting process. Just as these shipping resources make staying informed easy, SiShips is ready to make your freight experience smooth and straightforward. With our expertly designed software, we can save you time, money, and stress with every shipment. From quoting tools to customer management, SiShips offers methods to streamline each step. That means you can say goodbye to frustrating shipping experiences and hello to more time building the business you care about.

Want to discover how SiShips can change your import and export experience?

Get in touch with us.

How to Use SiShips to Manage Customers, Quotes and Shipments

Whether you are new to SiShips or have been with us since day one, it is clear that technology is the future of the transportation business – and the future is now. our management interface is Designed and built based on our years of shipping and customs expertise, SiShips is intuitive and useful. It guides you through each step of the shipment process, from creating and managing customers to generating accurate quotes to tracking shipments. Read on to explore each element of our software and see how it can help you streamline your import and export experience.

Creating Customers

Your customers are the backbone of your business. Managing them should be simple and seamless – which is why we created a tried and tested user experience that will save you time, money and stress.

To create a customer through SI Ships, simply choose the customers tab and then select “add customer.” From here, you can add any relevant information about your customer that you need, including their name, email, birthday and logo.

Then, you’ll choose a markup. We offer preselected markups that have worked best through our years of experience, with different tiers for different customer sizes. Markups can be adjusted for individual shipments or for specific customers as well.

Quoting Your Customers

It’s a busy week, and your desk is overflowing with to-dos. You need to get out quotes in a timely manner, but another department needs you, pronto. Luckily, you have Sheltered International at your fingertips, so you can develop estimates at the click of a button (and get back to putting out that fire).

Creating quotes allows for quoting air, less than container loads (LCL) or full container shipments – all instantly. Once your customers have been created, you can track their documents or holds, as well as your estimated profit from different quotes.

To put together a quote, simply input the origin and destination information. Then, you can compare ports, which can be filtered by cost or routing. If you have a more complicated quote, (or our auto rate system can’t accommodate your shipment), our custom quote tool is your MVP. This feature can manage shipments which may need a door pickup or delivery outside the US or may be overweight or oversized. It also allows you to provide Sheltered International with detailed information, helping us give you a fast and accurate custom quote. By providing you with all of the information available, SiShips can help you make informed decisions and offer your customers the best quotes possible.

Tracking Shipments

Transparency within tracking is the key to peace of mind. Our unique tracking feature offers complete clarity for your shipment’s progress. With a search feature plus filters, you can locate your shipment easily, and track it around the globe. We also show key milestones, quality assurance checkboxes updated by our operations team as your shipment moves forward. If you have any modifications to pickup or delivery, you can easily get in touch with our team here as well.

Beyond your shipment, you can also manage important documents through SiShips, including bills of lading, commercial invoices and the packing list.

If you’re busy, we offer automatic email reports to be sent to you and your team for effortless updates. You can even customize these notifications, allowing different teams or managers to receive only the notifications which are relevant to them.

With simple and consistent notifications and reports, you can spend more time focusing on your clients and their quotes – and of course, building your margins!

Are you ready to learn how Sheltered International can change the way you move freight?

Get in touch with us.

Freight Forwarding Latin America Manager Shares Commitment to Customer Satisfaction

Jose Esteban joined the Sheltered International team in June of 2018. As the Overseas LATAM Manager, he is the driving force for our Bogotá office. With more than six years of experience in the International Trade business, he is an invaluable addition to the team. As a professional in International Trade, he possesses special knowledge on air freight exports and imports. He boasts over nine years of customer service experience with a special focus on customer satisfaction, which shines through in how he manages freight forwarding at our Sheltered International Bogotá branch.

Born in Bogotá, Colombia, Esteban studied financial analysis and graduated in 2012 with a commercial and strategic focus. Before joining Sheltered International, Esteban spent nearly five years at DHL Global Forwarding, and ten months with Damco. His passion for the logistics business is rooted in his commitment to constant improvement. In the world of logistics, keeping up with the ever-changing world is the name of the game. Esteban thrives in an environment that provides constant innovation and opportunities to guarantee customer satisfaction through the changing of the times.

How long have you worked at Sheltered International?

I started at Sheltered International in June 2018, so about a year and a half.

What does your day-to-day entail at the Bogotá office?

I’m in charge of the performance of the BOG team. Mainly, I support the Pricing and Sales Development Department. I also act as OPS support or back-up when the team needs it. Additionally, I maintain the administrative tasks involved with managing a branch office, from making necessary payments, meeting obligations and supporting Human Resources when necessary.

Why are you passionate about your job?

Every day is an opportunity to learn something new. The world never stops. In logistics business, you need to move forward with that movement to be prepared for the future challenges. We also commit to working as a team to keep growing on a personal and professional level!

What do you enjoy doing outside of work?

While I like to read, enjoy time with my family and friends and practice sports, I also enjoy some extreme activities. Adrenaline makes me feel alive! In fact, I do a lot of activities, read, enjoy time with my family and friends and practicing some sports but mainly some extreme ones, I like to feel the adrenaline because makes you feel alive! For example, I enjoy sky diving and want to one day become a professional sky diver.

What do you feel like is the most helpful online resource or tool Sheltered International offers within the platform?

I think the Quoting tool is very useful for all the customers and Sheltered International staff. It saves both time and effort by providing competitive pricing quickly. Also, the tracking view is amazing. It’s important to our customers to have updated and accurate information about shipments that they can view in real time!

How does having an office out of Bogotá give you leverage internationally as a company?

Our Bogotá office helps grow our business. Our professional team works hard to give customers all they need and share those customer experiences with the other office. This gives us more visibility and new ideas to keep improving each day. At the end of the day, it’s a win-win. We cover all the customer needs and our business gets stronger each day!

What insights do you predict for 2020 within the shipping and transport industry?

As I mentioned before, in the logistics business the world never stops. We need to constantly move forward to prepare for future challenges. There will continue to be a need for freight forwarding because customers will always need to move their shipments around the world. Focusing on continued improvement and customer satisfaction is the key to becoming customers’ first choice and to help improve lives all around the globe.

Ready to Transform Your Freight Forwarding Experience?

Schedule a demo with Sheltered International today.

Sheltered International Founder Shares Journey of Transforming the Freight Forwarding Experience

Andrew Ciccarone knew the freight forwarding industry was in need of a technological face lift. After graduating from Florida State University in January 2011, he became the East Coast Manager for an international freight forwarding and customs service. After four years with the company, he became restless. Armed with a knack for technology and a natural entrepreneurial spirit, Ciccarone couldn’t help but notice a resistance in the industry to keep up with advances in technology. He saw clear opportunities for improvement in the freight forwarding experience and decided to make a change.

In March of 2015, he became the founder of Sheltered International. His venture focuses on technology to improve freight services, whether it be by air, ocean, rail or truck. The technology solutions give complete visibility to clients, from quoting to tracking. Nearly five years later, Sheltered International is changing the game in the freight forwarding industry. Read on to learn more about Andrew’s entrepreneurial journey and Sheltered International’s innovative services.

What inspired you to launch Sheltered International?

How is Sheltered International different from other transport providers?

How did SI come to operate out of Fernandina Beach, FL?

What are some of the most popular tools and resources SI offers to agents and customers?

What is the latest tech update within the platform, and what’s on the horizon?

Ready to Transform Your Freight Forwarding Experience?

Schedule a demo with Sheltered International today.

The Chinese New Year, also called the Spring Festival, is China’s most important holiday. This year, the festival begins on January 25th, 2020. Similar to Thanksgiving or Christmas in the US, people travel back home during the holiday season to spend time with their family —with one giant difference. All Chinese offices and factories close for nearly three working weeks, allowing workers in coastal Chinese cities to travel to their inland homes.

The period of increased travel surrounding CNY is the largest human migration in the world.
If you are wondering why one of China’s largest holidays matters to your business halfway around the world, sit tight. Since China is a major player in the global exporting industry, CNY plays a huge role around the world for retailers who rely on imports from China.

How to Plan for the Chinese New Year

The only way to get your business through the Chinese New Year is to plan. It’s hard to fathom all businesses shutting down in the United States for 3+ weeks, but in China, that is the reality. Although the holiday technically only lasts for one week, many factories and businesses shut down about 10 days before the Spring Festival to allow time for workers to travel home. Understand that once the holiday preparation begins, shipments out of the country are impossible. There is no way to avoid CNY. It happens every year and requires advanced planning to minimize interruptions for your business.

Create a Forecast and Increase Inventory Before CNY

Start preparations by analyzing sales patterns of previous years to understand how much inventory you’ll need surrounding the Chinese New Year. Stock up on inventory accordingly to ensure you’ll have enough product to last you through the holiday.

Here’s a tip: Look at what orders your business needs to receive in March. Since all exports will be closed for the Chinese New Year, arrange for 50% of the March volume to be delivered in January and 50% in February instead.

Remember to plan for after CNY. Factories are often slow to ramp back up after the New Year. With workers travelling and some opting to switch positions over the holiday, it’s important to plan for factory delays for 3-4 weeks after the holiday as well.

Book Cargo Pick-up in Advance

In addition to factories taking time off for New Year, many of the trucking companies and air and ocean carriers do as well. This leads to heavy volumes of shipments before the holidays and a limited amount of space. With increased demand and limited supply, the price rises on shipments made right before the holiday.

Additionally, waiting too long to book cargo pick-up runs the risk of carriers meeting max capacity and shipment delaying until after the holiday. Keep costs low and stay prepared by booking 14 to 21 days before your cargo is ready for pick up.

Create a Quality Management Plan

In a mad dash before the holiday, factories often rush to fulfill orders. This last-minute scramble leads to more quality issues than normal as the pressure rises to get product out the door. After the holiday, many factories need to hire new workers to replace any who opted to change positions during the holiday break. These new workers may make more mistakes as they go through training and the factory gets back up to speed.

To avoid a damaged shipment right before CNY, order in advanced and step up your inspection efforts. This gives your business time to inspect incoming orders and rectify any shipments with low quality standards. Having a quality management plan in place will reduce the risk of shipping defective goods to your customer’s door.

Know the Effects of the Chinese New Year and Plan for Success

While the date changes each year, the Chinese New Year is an inevitable annual occurrence. With proper planning and a keen understanding of the holiday, your business won’t skip a beat during this season.

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