Coronavirus and International Shipping: What You Need to Know

The coronavirus outbreak has had a significant impact on international shipping, causing delays, supply chain disruptions, and increased shipping costs. If you rely on shipments from China, understanding these challenges is crucial to managing your business effectively.

In this guide, we’ll break down the current situation and provide actionable steps to help you navigate the shipping disruptions caused by COVID-19.

How Is Shipping Affected by the Coronavirus?

Global trade, heavily dependent on Chinese manufacturing, has been severely impacted by labor shortages and business closures. Below are key areas where shipping has been disrupted:

• Reduced Air Freight: Many airlines, including American Airlines, United, British Airways, and Qantas, have suspended flights to and from China. Cathay Pacific has reduced flights by up to 50%. These restrictions have significantly lowered air freight capacity, leading to price hikes and unpredictable shipping rates.
• Global Mail Slowdown: Postal services worldwide are struggling to transport mail due to flight suspensions. The U.S. Postal Service has informed international counterparts that it is facing difficulties in shipping letters, parcels, and express mail items to China, Hong Kong, and Macau.

  China Post has implemented new safety measures, including disinfection of postal offices, vehicles, and non-contact delivery methods. Customers should expect significant delays in standard mail services.

• Reduced Courier Capacity: Courier services such as HK Post, Seko, DPD, and wnDirect suspended operations in certain regions of China. While some services have resumed, lockdowns in multiple cities continue to cause delays for both inbound and outbound shipments.
  
  For urgent deliveries, express shipping remains the best option, as major couriers prioritize these shipments over standard mail services.

• Ships in Quarantine: While ocean freight is less impacted than air freight, some disruptions are still occurring. The Yangtze River, a critical internal waterway for China, has seen reduced traffic, affecting shipments that rely on this route.
  
  Many countries, including Singapore and Australia, have implemented strict quarantine measures. Ships that have visited Chinese ports in the past two weeks may face entry restrictions or additional screening. These regulations contribute to longer transit times and potential delivery delays.

• Factory Production Delays in China: To combat the spread of the coronavirus, the Chinese government extended the Lunar New Year holiday in key manufacturing cities such as Shanghai, Ningbo, Shenzhen, Xiamen, Fuzhou, and Qingdao. Many businesses directed employees to work from home, and factory production remains limited.
  
  As a result, supply chain disruptions are expected to persist, affecting inventory levels and production timelines worldwide.

• U.S. Customs Regulations: Currently, U.S. Customs has not imposed additional restrictions on air or ocean shipments from China. However, businesses should stay updated on any policy changes that may arise as the situation evolves.

Economic Impacts of the Coronavirus on Global Trade

The economic effects of the coronavirus are already visible. Here are some key impacts:

• Event Cancellations: Major events worldwide, such as Barcelona’s Mobile World Congress, have been canceled due to health concerns.
• Supply Chain Disruptions: With factories in China struggling to resume operations, companies worldwide are experiencing delays in receiving essential components.
• Tourism Industry Decline: The drop in Chinese tourists has significantly impacted global travel, hotel bookings, and retail businesses in major tourist destinations.
  

How to Manage Shipping During the Coronavirus Outbreak

With ongoing disruptions, businesses need to adapt their shipping strategies. Here are some tips to help you navigate these challenges:

1. Stay in Constant Communication

• Notify clients about potential delays due to supply chain disruptions.
• Keep in touch with suppliers to stay updated on production timelines and shipping availability.
• Be transparent with customers about delivery expectations.

2. Use Express Shipping Options

Express couriers have remained largely functional during the outbreak. If you need urgent shipments, prioritize express services over standard mail to reduce delays.

3. Plan Inventory Levels in Advance

With unpredictable supply chain conditions, it’s essential to plan ahead. Stock up on critical products and materials to avoid shortages.

4. Monitor Changing Regulations

Government policies regarding shipping and trade are evolving rapidly. Stay informed about new shipping restrictions, customs regulations, and travel advisories that may affect your shipments.

5. Consider Alternative Shipping Routes: 

If air freight is too costly or unreliable, explore alternative shipping routes via sea freight or transshipment through less-affected regions such as Hong Kong.

Ship Customer Direct From China with Blind Shipping

One solution to shipping disruptions is blind shipping, which allows businesses to ship directly from China without revealing supplier information.

With blind shipping, we:

• Arrange factory pickups and generate new shipping documents.
• Protect your supply chain by concealing your supplier’s identity.
• Ensure faster delivery times and reduced shipping costs.

 

Blind shipping helps businesses stay competitive by keeping supplier details confidential and optimizing logistics. Contact us today to learn more about how blind shipping can benefit your business.

 

Perry David Caplan | Founder ShipCustomerDirect.com
877-887-4472, What We Do
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