Coronavirus increases international freight rates

According to the president of the Foreign Trade Companies Union of Santa Catarina State (Sinditrade), Rogério Marin, cargo movement at Santa Catarina ports has not yet been impacted by the coronavirus epidemic, but the effect should be felt in coming weeks. He believes that the volume of business should reduce by up to 5%.  This is a lot in the context of a worldwide service chain. According to him, although the economic situation caused by the virus is currently unpredictable, freight rates have already started to rise and this will have an impact on the cost of various products to the final consumer.

Foreign trade is shrinking and there are fewer ships sailing.  This is making space on vessels for containers more competitive, and therefore more expensive. A reduction in the number of vessels has occured not only because the market has slowed down, but also because, according to the president of the Sinditrade, several ports in China have fewer people working.  This in turn reduces the speed of cargo movement, which delays voyages and causes a chain reaction.

Source: NSC Total

Sharing is caring!