Currently, the coronavirus is the trending topic all over the world, and it has to receive the appropriate attention; but what is really concerning the whole market is how this virus has paralyzed the logistics industry. The panic this has generated on the population, and the commercial traders have been reflected in a reduction in the imports and exports all over the world.
Since December 2019 the first occurrences of the virus were noticed in the city of Wuhan, China. The virus has affected 80.000 people globally, nearly there have been more than 2,239 deaths in Asia and there are more than 700 cases detected around the world because it has spread to at least the other 30 countries. The cases of infection continue and currently, there is no vaccination for the virus but in Spain, people have recovered from it.
On the other hand, Coronavirus can put the fragile recovery of the world economy at risk. Last year China’s imports and exports exceeded one billion dollars and today the market could have an indefinite block. As most of the raw materials are manufactured in China, big suppliers industries have been affected. The global economic effect could be between 1 and 4 tenths depending on how quickly the epidemic is contained.
The largest container company A.P. Moller-Maersk has recorded losses of 78 million euros, compared to the profit of 2,766 million euros a year earlier. For February the shipping companies have canceled dozens of services. For the next few months, according to the Sea-Intelligence Maritime Consulting, there are going to be more than 90 shipping lanes canceled and this restriction directly affects TEUS of the shipping market.
This situation has not only affected the logistic market but also tourism and the health care system worldwide. We can definitely argue that the government and relevant organizations have to improve into having background strategies for these kinds of situations. This month will be crucial and all affected businesses believe that the return to normal will be gradual.
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