Cargo space shortage expected once China reopens for business

Cargo space shortages are expected in China following the re-opening of factories and offices on February 10th, after an extended holiday period due to the coronavirus outbreak.

While air freight capacity has been reduced due to cancelled flights, multinational logistics company CH Robinson is predicting a rush to convert ocean freight to air and rail freight once factories reopen and resume production, with a race to meet customer demands. This could put pressure on logistics operations.

Rail freight has faced delays and cancellations of its own. Ports in China are also facing congestion due to a lack of stevedores, slow loading and discharging, and limited land transport to and from the ports.

Carriers including CMA CGM and OOCL have announced a respite from demurrage and detention fees until February 9th, for cargo currently stuck at ports or depots in China.

Source: The Loadstar

Header image: Jeremy Bishop