Founded in 1903 The South China Morning Post is the Hong Kong newspaper of record, with a readership in excess of 300k. Once again, seeking insights on global freight issues, they have turned to NGL for guidance.
Producing a feature on the impact of Coronavirus on China’s economy, journalists sought direction on the current state of the Asian freight market from our managing director in Asia, Stefan Holmqvist.
Shipping traffic is another finger on the pulse of global trade, and Stefan Holmqvist, managing director of Norman Global Logistics in Hong Kong, is seeing “38 per cent blank sailings between China and Europe” and around 30 per cent for China to the US.
“This is an extreme situation, you might usually see two to three weeks with blank [or cancelled] sailings over Lunar New Year, but this has gone on for around eight weeks,” he said. “If the carriers thought the market was coming back soon they would not be cancelling so many sailings.”
The excess capacity on the seas is an inversion of the situation in the skies, where the pandemic has decimated passenger flights, on which 50 per cent of global air freight is transported. As a result, air freight rates from China to the European Union and the US spiked again last week, with the remaining fleet stuffed with medical supplies.
Click HERE to read the article in full on the The South China Morning Post web site