Coronavirus Impacting Trade and Business |
Posted: April 9, 2020 |
Coronavirus Impacting Trade and BusinessThe coronavirus has become an epidemic to hit our shores. As governments gear up towards trying to fight the virus with stringent protocols, trade is becoming heavily impacted. Freight forwarders, Shipping lines and Customs Broker Sydney have already felt the effects from a close of boarders and loss of trade. Importers and exporters globally are running out of stock and are being forced to shut down due to the pandemic. What will be the effects for the future when companies come back online? In this article, we don’t look at the point of view from a journalist or media representative. Journalists cover stories through statistics and “theories”. Our article will touch base from firsthand views from the supply chain industry. A freight forwarder is an entity that helps exporters and importers carry out the carriage of goods. They are 3rd party logistic agents. Being part of the industry, freight forwarders in Australia have had their say about the impacts of the Covid -19 virus has had to their industry and business. The world communicates and imports out of China. It’s the manufacturing hub of the world. When such an economy shuts down it has detrimental effects globally. The lines of produce and supply shut down very quickly. Markets Plummet – Trade goes Down Stock markets and commodities has dropped in the stock market. The U.S shipping industry seen a downturn in trade. Shipping from USA to Australia can become an exhaustive task due to the countries reliance on domestic transport. A detrimental effect to the economy and it’s citizens. International trade and supply chains are the first industries to feel the effect and the last ones standing before a collapse is inevitable. Although freight companies are back online but restricted in some countries, goods are still moving and that brings hope to every consumer. If all international trade had stopped, there would be a very quick shortage of essential commodities such as food and produce. Boycotting China – Customs brokers find out the inside Currently China has been receiving fewer orders according to trusted sources and this is impacted by media’s political views of how they handled the virus during the countries outbreak. Importers / Exporters are starting to boycott the manufacturing hub, to get back at what they see was the “origin of the virus “. Importers and exporters are looking at other districts in the world to formulate new lines of trade and open business communication With the world in deprivation and isolation on the outcome. We can look to history for the answers of the future. The Global Trade surge – International trade and markets are expected to repair. The length of time given is dependent on the economies ability to manage debt and expenses. With Airlines and Freight forwarders this would be a time that they would be opting to meet high consumer demand from importers and exporters. As the economies recover, stock markets balance out we will see an enormous surge of demand from regular household consumers. It can be forecasted that once business’s come back into trade. There will be a rising demand from consumers for imported and exported goods.
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