Page 89 - IBT October 2020
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Rates during the
Pandemic
Due to the reduction in capacity,
demand has surged. The industries that
The Affects of are seeing increased demand include
items like PPE products, but also other
goods such as bikes, cookware, and
COVID-19 within home construction materials. While the
demand is strong, there is uncertainty
Supply Chain & as no one knows how long the current
demand will last. Carriers continue to
be cautious and blank sailings as
Logistics in the USA planned.
For June and July, carrier rates
continued to increase to all-time highs,
and Abroad never seen in the market before.
General rate increases (GRIs) continue
to drive price increases for longer
periods of time, than prior to the
Economic Outlook and pandemic. Rates are not fluctuating as
often, mainly due to continued
By Ryan Sachs Capacity demand. Many carriers are able to
The global impact of COVID-19 left recoup losses and see annual gains. For
most shippers uncertain if they the foreseeable future, we will continue
would be shipping, and if so, how. to see increased rate levels until the
Due to limited demand in Q1/Q2, market demand decreases and market
carriers offset this by reducing capacity increases.
capacity in the market for the Although the effects of supply chain
months of June and July in order to issues during COVID-19 have been felt
The COVID-19 pandemic has impacted begin recovery and balance supply across the world and the outlook for
the global economy in ways unseen with expected demand. While blank the remainder of 2020 is less than
by many before. With some industries sailings have become a regular part favorable, companies, such as V.
seeing growth, others seeing none, of shipping, the extent of these came Alexander & Co., Inc., continue their
companies and manufacturers as a surprise to most. In the first six commitment to partner with global
shuttering, and others working months of 2020, there were over businesses to provide leading-edge
week-to-week, the uncertainty of all 1,600 blank sailings. In any given transportation, logistics, and supply
of these changes is also being felt week throughout the pandemic, we chain management solutions.
within the ocean transportation have seen overall market capacity Ryan Sachs works with Global Business
market. reduction by nearly 15-20%. Development at V. Alexander & Co., Inc.
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Source: Global Chamberf www.ibtbd.net
