Coronavirus impacts air and sea freight

With the continuing escalation of the Coronavirus pandemic, it is expected that ocean and air shipments out of China will be significantly affected in the coming weeks. The extended Chinese New Year holiday, travel restrictions and impact on manufacturing will present multiple and complex challenges across global supply chains.

The airlines that have suspended or severely reduced their flights includes United Airlines, Cathay Pacific, Air Canada and British Airways, substantially reducing the availability of belly-hold space, impacting air freight capacity and available rates.

The list appears to be growing as governments and carriers are moving to cancel or defer flights, and as a consequence restricting the movement of air cargo.

While Wuhan port operations have been suspended until further notice, other ports are still operational. However the possibility of delays is elevated, particularly as the shipping lines have already built several weeks of depressed volumes into their operations. Shipping companies are expected to operate blank sailings through February and early March.

Over the past few days the situation in mainland China has escalated significantly and the World Health Organisation has declared a global health emergency. Please find below a brief overview of the current Coronavirus situation:

• As of 3rd February, there are 20.638 confirmed cases across 27 countries; 427 deaths have been reported, with the first death outside of the mainland reported in the Philippines

• The vast majority of cases are within the regions around Wuhan, with mainland China accounting for 20,444 reported cases

• Both Wuhan and Wenzhou cities are on lockdown, with comprehensive travel restrictions in place across the southern and eastern regions

• A number of countries have advised their citizens against travelling to China, and have implemented quarantine regimes for people entering if they have visited China recently; some land borders adjoining the Chinese mainland have been closed

• The Chinese government have advised key provinces and regions not to resume work before 10th February at the earliest; these regions accounted for 80% of China’s GDP and 90% of exports last year

• Hubei businesses are due to extend business closures until 14th February and other regions may align to these measures if infection rates continue to rise

When factories open, after their extended closure, the demand for freight space is likely to peak demand with space shortages and likely rate increases.

Port operations @ 3rd February 2020*

Hong Kong
Operating as normal

Shanghai
3rd to 9th February essential operations; from 10th February: normal operation resumed

Ningbo
3rd to 9th February essential operations; from 10th February: normal operation resumed
Blank sailings announced on the second week of February

Qingdao
3rd to 9th February essential operations; from 10th February: normal operation resumed
Blank sailings to be advised

Tianjin
From 3rd February: normal operation resumed
Blank sailing announced by COSCO for 10th February

Dalian
From 3rd February: normal operation resumed
Blank sailings to be advised

Fuzhou
From 3rd February: normal operation resumed
Blank sailings to be advised

Xiamen
From 3rd February: normal operation resumed
Blank sailing announced by COSCO/CMA for 2nd week in February

*This situation outlined is subject to change. Contact us directly for the latest update

Metro Shipping is receiving daily customer advisory updates from our carriers and partners and is monitoring information from a range of public and private media sources.

We will liaise with carriers and keep our customers informed with further updates. If you would like any further information, or wish to highlight any specific shipments please call your usual Metro contact for guidance and the latest information.