BURSTING import warehouses are
putting pressure on ocean carriers to slow deliveries, which is expected to
reduce container shipments 30 per cent in the next few months, says International Chamber of
Shipping (ICS) chairman Esben Poulsson.
Shipments have probably fallen
about 15 per cent so far this year amid the coronavirus pandemic, according to
Mr Poulsson. Second-quarter declines, compared with a year ago, will depend on
by how much governments reopen economies, he said.
"Inventories of goods like
apparel, textiles, white goods, are full," Mr Poulsson said. "We are
hearing of receivers of these goods asking shipping lines whether they can
store these goods for a period of time or slow their ships down or basically
delay taking delivery."
The slump is a setback for
shipping giants such as Cosco and Ocean
Network Express (ONE), which started
the year strong as healthy trade volumes allowed the industry to boost rates.
That optimism has now evaporated as the virus outbreak has forced shoppers to
stay home, crimping retail sales in the biggest consumer markets.
Forward bookings for shipments
from Asia to North America and Europe have slowed for April and into May,
according to ONE chief executive Jeremy Nixon. Shipments of products from North
and Latin America, Europe and Oceania to Asia are still strong, said Mr Nixon.
Source : HKSG.
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