Some 2.3m freight containers are sitting idle in China as coronavirus hits international trade, sources have told the Irish Farmers Journal. Restricted working in China is having a severe impact on world shipping routes and logistics are a growing problem in keeping world trade flows moving. Chinese ports have been operating between 20% and 50% of capacity and over one-third of ports’ storage capacity are over 90% full.
Some 2.3m freight containers are sitting idle in China as coronavirus hits international trade, sources have told the Irish Farmers Journal.
Restricted working in China is having a severe impact on world shipping routes and logistics are a growing problem in keeping world trade flows moving. Chinese ports have been operating between 20% and 50% of capacity and over one-third of ports’ storage capacity are over 90% full.
As well as restricted availability of equipment, it is now difficult to secure a booking for container transport to China
The resulting 2.3m containers sitting idle there has resulted in a shortage of containers across the world.
As well as restricted availability of equipment, it is now difficult to secure a booking for container transport to China and where it is available, rates have increased dramatically because of scarcity of supply.
Cancellation of sailings from Rotterdam to Asia are running at 20% and sailings to other destinations in Africa and the Middle East are also reduced.
One Australian exporter resorted to chartering a cargo aircraft to fly in Australian beef to China
The South American beef industry is reporting a recovery in demand from Chinese buyers but it too is experiencing the same logistical delivery problems with Chinese ports as everyone else.
One Australian exporter resorted to chartering a cargo aircraft to fly in Australian beef to China, but given the relative cost of airfreight compared with sea container freight, this isn’t a long-term viable option.
US
Coronavirus uncertainty is also having an impact on trade in the US, where the value of Australian and New Zealand manufacturing (95cl) beef has fallen by over €2/kg since mid-November. Back then, it peaked at €6.70/kg equivalent but last week it was down to the equivalent of €4.55/kg, a similar value to this time last year.
Disruption in China is making more of Australian and New Zealand beef chase markets in the US.
Irish exports to the US have fallen to a trickle in recent weeks, having been running at twice last year’s levels in January.
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