Global Cargo Volume Paralyzed... "Sharp Decline in Major Hub Port Cargo Volume"

Shanghai Cargo Volume Drops 20% Year-on-Year
Economic Paralysis Due to COVID-19 Lockdown Measures

[Asia Economy Reporter Naju-seok] The impact of the novel coronavirus infection (COVID-19) is also adversely affecting global trade volumes. As orders from developed countries responsible for consumption have decreased, exports from emerging countries responsible for production have also declined. As containers that have not completed unloading accumulate, a temporary supply-demand imbalance of containers needed for exports is even emerging.

According to Bloomberg News on the 29th (local time), the cargo volume at Shanghai Port, boasting the world's largest cargo throughput, decreased by 20% compared to the previous year last month. The cargo volumes at Long Beach Port in California, USA, and Hong Kong also decreased by 9.8% and 11%, respectively.

This is the result of logistics coming to a halt as countries strengthened border controls and quarantines to prevent the spread of COVID-19. According to IHS Markit, trade hubs such as Rotterdam in the Netherlands and Antwerp in Belgium have no empty containers available. On the other hand, in China, empty container ships are piling up waiting to be loaded with cargo. This is because it is uncertain whether cargo volumes will increase in Europe, which is suffering severe damage from COVID-19.

According to Container Exchange, a logistics analysis agency, the container availability index at Shanghai Port was 0.38 as of the 12th week of this year, showing a difference of 0.02 compared to 0.58 during the same period last year. If this index exceeds 0.5, it means there are many spare containers, but if it falls below, it indicates a shortage of containers.

At Savannah Port, the largest port on the U.S. East Coast, containers that have not been unloaded are also expected to accumulate. This is because lockdown measures have closed not only factories but also stores.

According to IHS Markit, as of the 19th of this month, U.S. export volume was recorded at 700,000 tons. Considering that export volume was 11.6 million tons on January 30, just two months ago, this is a significant drop.

As countries issue stay-at-home orders to prevent the spread of COVID-19, both production and consumption have stopped, causing disruptions on both the supply and demand sides.

Bloomberg News reported, "There has never been such a sudden shock even during World War II," adding, "With companies closing and consumers staying at home due to COVID-19, the global supply chain is paralyzed."

Robert Koopman, an economist at the World Trade Organization (WTO), described the situation as "things happening that can only be seen in war scenarios."

This content was produced with the assistance of AI translation services.