Week 25 Freight Updates

June 19th, 2020

Threats of global trade fallout, increased demand for reusable packaging, significant drops in container capacity, and volatile automotive volumes are making headlines throughout the ocean shipping sector. Short on time? Check out our summary of the latest industry news for this week:

COVID-19 Global Trade Fallout

COVID-19 Global Trade Fallout

The Organization for Economic Co-operation and Development (OECD) recently predicted that a second wave of COVID-19 will severely impact global trade recovery. Even if the virus is contained, the potential for companies to reroute sourcing poses a huge threat to international supply chains, especially for container shipping.

Automation Increases Demand for Reusable Packaging

Automation Increases Demand for Reusable Packaging

According to a survey released by the Reusable Packaging Association (RPA), 81% of logistics service providers anticipate more demand for reusable transportation packaging as a result of increased automation. With additional increases in industry collaboration and standardization, single-use packaging seems to be on the decline with the introduction of improvements in operational efficiency.

Ocean Shipping Capacity Drops by 4.5 Million Containers

Ocean Shipping Capacity Drops by 4.5 Million Containers

Due to unprecedented declines in demand and disruptive supply chain delays, ocean shipping lines and carriers have canceled approximately 4.5 million containers in an attempt to manage capacity and cut costs. Typically, this time of year is used to plan for peak season; however, the effects of the coronavirus pandemic have left companies struggling to find ways just to cover their operational expenses.

Automotive Industry Impacts Trans-Atlantic Trade Volumes

Automotive Industry Impacts Trans-Atlantic Trade Volumes

Data collected by IHS Markit showed that demand for automotive and machinery exports to North America has decreased by 40% and 14.3%, respectively, because of COVID-19 limitations. As carriers scramble to adjust capacity and volume remains volatile, the automotive industry could potentially experience a crisis a lot more severe than the one in 2008 if left unchecked.

2020-07-30T18:47:22+00:00June 19th, 2020|Air Freight, Freight Forwarding, Ocean Freight|