Freight rates in the shipping industry will decline in the current months due to the spread of the Corona virus, and this trend may continue in the coming months.
According to the reports of international institutions regarding maritime transport, the Drewry Institute in its latest report has examined the impact of the spread of the corona virus on various sectors of the shipping industry and says: After the shipping industry and international shipping It started very well in the first days of 2020, but with the spread of the corona virus, the sky of this market turned dark. Although the Chinese government took strict and serious measures, including closing 16 cities and the entire province of Wuhan, in order to stop the spread of the corona virus, it is still spreading and has affected the international transportation industry and the world’s shipping industry.
Based on this, it is expected that the fear of the transmission and spread of the corona virus will increase the capacity of the container ship fleet to be inactive and idle in the coming months.
Due to the decrease in transportation requests due to the spread of the corona virus, the main shipping lines such as Merest and CMA CGM have announced that the trip to the Chinese ports affected by the corona virus has been canceled.
It should be noted that the dry bulk cargo market has been severely affected by this virus, so that the production in the cities affected by the virus has come to a standstill, and as the virus spreads, the risk of shutting down production in more cities threatens. Accordingly, the Baltic dry bulk index began a downward slope on January 31st, and this trend is still in force.