{"id":4358,"date":"2020-02-11T22:24:14","date_gmt":"2020-02-11T22:24:14","guid":{"rendered":"https:\/\/siships.com\/?p=4358"},"modified":"2020-06-24T17:37:45","modified_gmt":"2020-06-24T17:37:45","slug":"coronavirus-effects-on-shipping-industry","status":"publish","type":"post","link":"https:\/\/siships.com\/blog\/coronavirus-effects-on-shipping-industry\/","title":{"rendered":"What to Know About Coronavirus and Its Effects on the Shipping Industry"},"content":{"rendered":"<h2>How Coronavirus is Affecting Trade with China<\/h2>\n<p>After the outbreak of the SARS epidemic in 2002, medical experts called for <a href=\"https:\/\/www.ncbi.nlm.nih.gov\/pubmed\/22258842\" target=\"_blank\" rel=\"noopener noreferrer\">stricter quarantine laws<\/a> 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.<\/p>\n<h3><img loading=\"lazy\" class=\"alignright wp-image-4359\" src=\"http:\/\/siships.com\/blog\/wp-content\/uploads\/2020\/02\/vanveenjf-FrUsD5obrHA-unsplash-1024x513.jpg\" alt=\"coronavirus shipping industry\" width=\"780\" height=\"391\" srcset=\"https:\/\/siships.com\/blog\/wp-content\/uploads\/2020\/02\/vanveenjf-FrUsD5obrHA-unsplash-1024x513.jpg 1024w, https:\/\/siships.com\/blog\/wp-content\/uploads\/2020\/02\/vanveenjf-FrUsD5obrHA-unsplash-300x150.jpg 300w, https:\/\/siships.com\/blog\/wp-content\/uploads\/2020\/02\/vanveenjf-FrUsD5obrHA-unsplash-768x385.jpg 768w, https:\/\/siships.com\/blog\/wp-content\/uploads\/2020\/02\/vanveenjf-FrUsD5obrHA-unsplash-1144x573.jpg 1144w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/>Coronavirus Quarantines and Reduced Exports<\/h3>\n<p>Many factories around China have been temporarily closed following the outbreak of the virus, with some not anticipated to open until <a href=\"https:\/\/www.washingtonpost.com\/world\/asia_pacific\/for-want-of-widgets-exporters-hit-by-china-factory-shutdown-race-to-shore-up-supplies\/2020\/02\/06\/f13f7602-47f0-11ea-91ab-ce439aa5c7c1_story.html\" target=\"_blank\" rel=\"noopener noreferrer\">March 1<\/a>. With these facilities shuttered, exporters can expect to see similar effects as with the <a href=\"https:\/\/siships.com\/is-your-business-prepared-for-chinese-new-year\/\" target=\"_blank\" rel=\"noopener noreferrer\">Lunar New Year<\/a>, 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 <a href=\"https:\/\/apnews.com\/f3b52ac4a8377556322175b87e591458\" target=\"_blank\" rel=\"noopener noreferrer\">Hyundai Motor<\/a>, <a href=\"https:\/\/qctimes.com\/business\/deere-co-temporarily-closes-chinese-facilities-amid-coronavirus-outbreak\/article_03216fdd-ab02-54a5-90b8-a4a8007ed186.html\" target=\"_blank\" rel=\"noopener noreferrer\">Deere &amp; Co.<\/a>, and <a href=\"https:\/\/www.nytimes.com\/reuters\/2020\/02\/08\/world\/asia\/08reuters-china-health-autos-factbox.html?auth=login-email&amp;login=email\" target=\"_blank\" rel=\"noopener noreferrer\">PSA Peugeot Citroen<\/a> have all been affected by these closures and supply disruptions.<\/p>\n<h3>Sea Freight Shipping Demand<\/h3>\n<p>With limited production, <a href=\"https:\/\/www.hellenicshippingnews.com\/coronavirus-impacting-the-global-shipping-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">demand for shipping containers<\/a> is dropping rapidly, resulting in low freight rates. Sea-Intelligence, a maritime analyst, <a href=\"https:\/\/www.joc.com\/maritime-news\/trade-lanes\/shipping-capacity-concerns-rise-coronavirus-fueled-blanks-increase_20200207.html?destination=node\/3628306\" target=\"_blank\" rel=\"noopener noreferrer\">predicts<\/a> a loss of $300-350 million weekly for carriers. Further, according to maritime data provider <a href=\"https:\/\/www.wsj.com\/articles\/coronavirus-hits-shipping-as-china-port-traffic-slides-11580928711\">Alphaliner<\/a>, major Chinese ports have seen a 20% decrease in ship calls since January 20. To combat this, sixteen Chinese ports are offering <a href=\"https:\/\/www.seatrade-maritime.com\/ports-logistics\/coronavirus-16-chinese-ports-offer-reduced-charges\" target=\"_blank\" rel=\"noopener noreferrer\">reduced rates<\/a> in an attempt to lure liners back in. In contrast, nearby ports like South Korea\u2019s Busan are experiencing <a href=\"https:\/\/www.nasdaq.com\/articles\/chinas-coronavirus-disrupts-global-container-shipping-trade-2020-02-07\" target=\"_blank\" rel=\"noopener noreferrer\">spillover<\/a> and rising container capacities. If these levels continue to rise, ports\u2019 efficiency will be compromised, adding to potential delays.<\/p>\n<p>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 <a href=\"https:\/\/www.wsj.com\/articles\/opec-allies-weigh-deeper-oil-production-cuts-to-counter-coronaviruss-impact-11580826459?mod=article_inline\" target=\"_blank\" rel=\"noopener noreferrer\">limit<\/a> crudes runs.<\/p>\n<h3>Effects on Air Cargo<\/h3>\n<p>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 <a href=\"https:\/\/www.joc.com\/air-cargo\/air-cargo-recovery-doubt-after-coronavirus-crisis-iata_20200206.html\" target=\"_blank\" rel=\"noopener noreferrer\">redirected<\/a> to available freighters, but these flights have also been drastically reduced or suspended entirely out of concern for the crew\u2019s safety.<\/p>\n<h3>Short- and Long-Term Effects<\/h3>\n<p>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 <a href=\"https:\/\/finance.yahoo.com\/news\/ocean-shipping-coronavirus-crosshairs-152652509.html\" target=\"_blank\" rel=\"noopener noreferrer\">SARS epidemic<\/a> is any indication, Chinese markets will manage to recover once coronavirus has been contained, resulting in only short-term interruptions.<\/p>\n<hr \/>\n<p style=\"text-align: center;\">The shipping industry can be unpredictable. Keep track of any delays or disruptions that might affect your business with SiShips.<\/p>\n<h4 style=\"text-align: center;\"><a href=\"https:\/\/siships.com\/customers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Learn more about SiShips can simplify your freight experience.<\/a><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":4359,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24],"tags":[40,58,30,57,44,59,50,56],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.5.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Coronavirus&#039; Effects on the Shipping Industry - SiShips<\/title>\n<meta name=\"description\" content=\"Factory closures, lack of shipment demand, and concerns for health and safety have all led to significant effects on the shipping industry from coronavirus.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/siships.com\/blog\/coronavirus-effects-on-shipping-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coronavirus&#039; Effects on the Shipping Industry - 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