Retailers are asking shipping companies to push back deliveries as warehouses are getting so full of goods like fridges and washing machines. Global container shipments may get dragged down as much as 30 percent in the next few months.
So far this year, International Chamber of Shipping Chairman Esben Poulsson said shipments have probably fallen about 15 percent amid the coronavirus pandemic. Compared with a year ago, second-quarter declines will depend on how much governments reopen economies.
For shipping giants such as Ocean Network Express Holdings Ltd. and Cosco Shipping Holdings, the slump is a setback. As healthy trade volumes allowed the industry to boost rates, both companies started the year strong. As the virus outbreak has forced shoppers to stay home, that optimism has now evaporated.
According to Ocean Network Express Chief Executive Officer Jeremy Nixon, forward bookings for shipments from Asia to North America and Europe have slowed for April and into May. From North and Latin America, Europe and Oceania to Asia, shipments of products are still strong.
The industry has been hit by restrictions to contain the outbreak as well as lower volumes. Amid cancelled flights and port curbs, a major challenge remains to ensure that seafarers can board and transfer onto ships.
