Coronavirus has been an absolute nightmare, not only for the millions of Chinese people who have been locked up in their homes but for the businesses that are on shutdown too.
In response to the disease, the Chinese Government closed down factories, ceased shipments and locked down the ports in a bid to help stop the disease spreading.
It’s like something out of an apocalypse movie.
But just because you’re not in China, doesn’t mean you won’t feel the impact of these bold moves.
As it currently stands, more than 90% of the factories in China are still on lockdown.
Ships have been prevented from entering China and some countries have refused to allow ships bringing goods from China to dock at their ports. This has resulted in cargo ships being stranded in ‘quarantine’ in the ocean, shipments delayed and a serious backlog.
But what does this mean for you?
As it stands, there’s not enough ships or enough spaces onboard them for the cargo people are wanting to move.
Although the Chinese government seem to be making progress and hope to have things back to normal operation soon, there is going to be a serious backlog with no guarantee of space onboard freight carriers until the end of March!
Spaces will be limited, demand will be high and prices will hike to reflect that. It’s a classic supply and demand issue.
It’s not just us with this problem – Everyone in freight is in the same boat!
Now, I’ve been in business long enough to know that sometimes things happen that are out of our control. It might be a hurricane, a tsunami or a mutated virus. Whatever it is, you’ve just got to roll with the punches.
So what can you do to minimize the impact on your business?
1: Don’t delay. If you need to move goods then speak to us now, the sooner you take action the sooner we can start getting your goods moving.
2: Plan ahead. This backlog could go on for months. If you’re ok for stock now, but might need to order more in March or April then I’d jump in now and get ahead of the queue.
3: Budget accordingly. This major disruption is almost certainly going to hike freight prices for the next few months. Be sure to take this into account when you’re planning your budget and pricing your goods.
That’s it for now,