Coronavirus: Global Trade Hit As China Shuts Factories!

Given China’s strategic role in the world trade, the global trade business has been badly hit over the fears of Coronavirus spread.

Over fears of coronavirus spread, leading shipping companies that carry goods to and from China are gradually cutting down the volume of container shipments in their supply chain.

This is really alarming, considering the fact that China accounts to 80% of the global trade by volume.

According to the UN Conference on Trade and Development, the country is also home to ‘7 of the world’s 10 busiest container ports’.

Renowned international shipping association BIMCO confirms this alarming scenario in its statement.

“A closure of the world’s manufacturing hub impacts container shipping at large, as it is a vital facilitator of the intra-Asian and global supply chains,” says Peter Sand, chief shipping analyst at BIMCO.

“This will affect many industries and limit demand for containerized goods transport,” Sand adds.

Every industry including automobiles, textiles, etc. is worried as the country announced closure of its factories over coronavirus outbreak.

International shipping giants including Maersk, MSC Mediterranean Shipping, Hapag-Lloyd and CMA-CGM have already cut-down the number of vessels across routes connecting China and Hong Kong with India, Canada, United States and West Africa.

Not just shipping, air cargo to and from China has also taken a serious hit!

British-based IAWY cargo cancelled all its services to and from mainland China citing the UK Government’s travel advisory in the wake of coronavirus.

German logistics provider DHL has reported discrepancies in its inbound and outbound trucking, air and rail services.

So far, coronavirus has claimed the lives of 638 people and infected at least 31,472, mostly in China. Around 60 million in different Chinese cities are currently facing the lockdown.