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Major freight capacity challenge

18 Feb 2020
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As factories and logistics providers seek to resume operations following the outbreak of the novel coronavirus, they now face labour shortages and regulatory uncertainty, according to a report just published by DHL.The report predicts that this could disrupt global supply chains until April or beyond.And while production-related challenges may be overcome in the coming weeks, limited inbound and outbound capacity – both ocean freight and airfreight – could become the biggest obstacle.It’s been widely reported that shipping lines have announced extensive blank sailing programmes while some carriers have cancelled scheduled stops.A similar pattern has emerged in the airfreight sector where volumes reveal the extent of the damage.According to a survey conducted by CLIVE Data Services, the air cargo industry recorded a 4% year-on-year decline for January.And although cargo volumes were expected to decline during the Chinese New Year holiday, the impact could be even more severe.

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FTW 21 February 2020

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