The pandemic’s effect on shipping and what to do in 2021.

Metro Vancouver’s leader in trucking and warehousing dives deep into the pandemic’s effects on shipping. Stay informed, plan, and learn from one of the best and take your business to the next level in 2021! 

The pandemic’s ripple effect on businesses and consumers is still being felt across the world today even though it has been more than a year since everything came to a standstill. Shipping rates have exploded and delays are well on the horizon when shipping goods via sea. Staying informed, having a game plan, and hiring the right people to help you make the right pivots when a problem comes up is key to navigating this new normal when importing/exporting and moving goods from A to B. 

How did the pandemic affect container shipping?

Q2 of 2020

As everything came to a standstill during the first few months of the pandemic and countries raced to learn more about the coronavirus, goods began building up at docks at one end and containers started building up on the other. China being a major manufacturing hub had goods piling up, waiting to get to other parts of the world. However, containers that finished transporting their previous shipment had yet to make their way back to China to be refilled. The number of shipping containers was not the only problem though. There was also an imbalance between the supply and demand of shipping vessels. This perfect storm resulted in an enormous bottleneck of goods. 

Q3/Q4 2020

The flow of goods resumed, albeit slowly and occasionally at reduced levels of efficiency due to COVID protocols, but playing catch up is hard when you throw increased consumer goods spending into the mix. The shipping industry was not only trying to clear the previous backlog of goods built up from Q2, but consumers in wealthy countries that would have spent their dollars on experiences, like vacations, movies, dining, were now redirecting their money to new products. 

Q1 2021

The world experienced yet another setback as it was trying to adjust to the new shipping landscape when the Suez Canal was blocked for six days at the end of March. The global economy is intricately connected and a standstill on one side of the globe has cascading effects on other ports as well. 

What is the outlook going forward?

Businesses that rely heavily on shipping goods via intermodal containers (sea, rail, or LTL/FTL trucking) have probably adjusted to bottleneck problems, capacity shortages, and high pressure on rates by now. 

Economic growth in various economies across the world is projected to continue to heat up and demand will continue to rise. However, the manufacturing of containers and shipping vessels will not be able to satisfy demand in the near future and we will see pressure on container demand not only in 2021, but also into 2022. 

What can you do?

Many businesses have been prioritizing the fulfillment of orders over their bottom line, but this may be a necessary strategy in the short term as everyone waits for capacity and freight rates to dial down from their current elevated levels. In the meantime, having the right teams (freight forwarders, customs brokers, leaders in trucking and warehousing) working for you is your best bet in navigating the shipping waters. Having a solid game plan and experts to help you pivot seamlessly when needed will keep your business running smoothly. 

There have been many challenges for business owners this past year, but with every challenge comes an opportunity for growth. For those who are able to rise to the occasion and think outside the box, the opportunities are endless. As a leading provider of transportation and warehousing in BC with authorized access to all major ports and rails, our team is always up to date with the latest changes and developments related to shipping, trucking, intermodal transportation, and importing/exporting both domestically and internationally. 
From LTL/FTL services to bonded sufferance warehousing, our fleet of 250+ trailers and an extensive range of trucks is here for you. Contact us today at (604)-276-9044 or info@sandhartrucking.com. We would love to chat with you about your needs and how we can help!