to alternate suppliers for the products a company needs to keep its business running? • What are the intrinsic costs and operational consider- ations involved in such a change in suppliers? • How will the current Coronavirus outbreak ultimately affect corporate profits?
in freight movements from the Far East. Already we are seeing significantly lower freight volumes from China, cre- ating a drop in container demand to some estimates of 1.7 TEU’s. We are also seeing the Coronavirus playing havoc in Europe, so we’re fairly certain freight volumes will also be
• What can and what should a company do now to soften the blow corporate profits will obviously take? Perhaps Some Good News–Lower Freight Rates It is also obvious that we will see a downturn in ship- ping rates as freight volumes decrease as a result of the spread of the Coronavirus. These freight volume decreas- es have already started of course with a sharp reduction
down on intra-Europe shipping, as well as exports from many European countries. There are thousands of empty cargo containers currently in the U.S. and the European Union that will at some point need to be returned to the Far East. Both international and domestic freight sectors will be CONTINUED ON PAGE 34
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April 13, 2020
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