Supply chain disruptions caused by the COVID-19 outbreak are placing hundreds of millions of dollars worth of shipping business in jeopardy.
Tanker charter rates have torpedoed more than 80 percent as the coronavirus outbreak continues to slam the brakes on large economies, costing the shipping sector hundreds of millions in lost business.
There has been a significant decrease of raw material imports in economic powerhouse China because factories had stopped and are only starting to recover.
Container ships’ round trips through Chinese ports were being increasingly cancelled because of low load levels. Shipowners have asked staff to stay on board and wear face masks.
Crews were not being swapped in China, and ships were not receiving and loading food during Chinese port stays. A trade rebound could put the sector back into calmer waters later this year.