International trade situation March 30th

31.03.2020
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international trade situation covid

As we already know, in the international transport field, the covid-19 crisis is affecting urban transport more than freight transport.

Fortunately, in goods transportation, we are maintaining compatibility and all the necessary measures to ensure international traffic. At a global level, we have a strong commitment to guarantee the proper functioning of the supply chain, therefore all the actors that intervene on this matter, are making a great effort to ensure that there are no setbacks.

Below you will find a summary of the global situation. As you can see, the maximum impact currently seen is related to the containers space  and availability, however we are being able to solve it without major setbacks.

– Ship cancellations to / from China are due to limited export volume, and as a result, we find that there is less space and fewer containers available for countries trading with China. It will be an one-off situation, since according to the communications by the government of the Asian giant, they assure they have started the reactivation of its economy, and they hope to maintain a very close relation with Spain.

The official Chinese news agency Xinhuan, reports that during the week of March 9-15, the performance of the country’s main ports increased 1.1 percent compared to the previous week, those data confirming the revival.

http://es.china-embassy.org/esp/wjyw/t1757669.htm

-European shipping will face limitations throughout the month, especially on routes connecting to the Middle East / Indian Subcontinent and Oceania.

-In Europe, the lower number of ship arrivals from Asia has caused a small shortage of containers (especially refrigerated containers) and special equipment. -In Asia, carriers are operating with reduced capacity, as are most of the operating ports, although supply-demand is balanced. Refrigerated containers are in short supply, and trucking is slightly below full capacity. The official information has not detailed anything yet for the transport of goods, we remain vigilant waiting for the official movements of the country to be able to expand the information.

-In both Americas, there have been capacity limitations and equipment shortages for exports, as well as a series of tariff surcharges for equipment repositioning. In the following link you can see the MSC maritime guide in which they detail in which situations these surcharges could apply.

https://www.msc.com/getattachment/fdebc8fb-faf5-4405-ab32-4e97f5486878/636355602856533885

-In Spain, port traffic continues to function well, with a strong commitment by the Government to take maximum care of the measures proposed by the WHO to ensure and guarantee the supply chain.

https://www.apba.es/noticias/covid19-canceladas-las-lineas-de-pasajeros-algeciras-tanger-med-y-tarifa-tanger-ciudad

HOW WE ARE SOLVING IT

From EccoFreight we leave you some recommendations to implement in your company that will guarantee the proper functioning of the chain:

-We strongly recommend that you manage the bookings as far in advance as possible, contact your sales agent if you need help to do so, and keep them updated regularly.

-It is important that you take into account the possibility of creating an additional stock, whenever possible for your business type.

-Keep all parties involved in the supply chain aware of the international situation, this will make it easier for all the actors involved in the supply chain to know the importance of their role at the moment. You can forward our emails or write to us, so that we can send them directly to you.

-In case of any doubt that may arise in the face of the global commercial situation, please do not hesitate to contact us, we are here for you.

For our part, we are making every effort to guarantee the proper functioning of your logistics operations, keeping all processes under control and keeping ourselves updated on the global situation at all times:

-We are especially aware of the blank sailings that may arise, having controlled all the shipping companies and departures of each week in the different ports in case we need to change providers to ensure that your cargo leaves port.

-We are in permanent contact with our international agents in order to offer you the official information at first hand.

-Our traffic agents are being informed at all times, so that they can help you carry out the necessary bookings anticipations.

In this time of social distancing due to the global crisis of Covid-19 we want to take advantage of being, even more so, close to all of you.

We are here to support you.

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