Corona virus barrier to the logistics sector; Prices increase by 40 percent in sea transportation

Corona virus barrier to the logistics sector; Prices increase by 40 percent in sea transportation
17 March 2020

The Corona virus outbreak has also deeply affected the logistics industry. While 14 countries in Europe closed their borders for land transportation, there was a price increase of up to 40% in sea transportation.

*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***

ISTANBUL (TR) - The Corona virus outbreak, which started in Wuhan, China, started to increase its impact in many regions, especially in the European continent, in March. While closing the border gates is one of the precautions taken by the countries, this situation negatively affected the logistics sector. According to the statement made by the online logistics platform Navlungo, it has been noted that the cost of container transportation, which increased due to low sulfur fuel application in sea transportation at the end of 2019, increased even more with Corona virus, while the price increase reached 40%.

Urgent orders registered with the airline, reservations are filled by mid-April

Isa Korkmaz, CEO of Navlungo, made evaluations on the latest developments. Korkmaz said, “The decrease in cargo capacity due to the cancellation of flights of passenger aircraft in airline freights caused a price increase between 15-20% in airline freight prices between Europe and America. China and Turkey in this case, as well as directly affecting the airways of emergency in order to catch up with the shift by sea, and that will likely lead to a further price increase in air transport time. " said. İsa Korkmaz also shared the information that reservations have been completed on some routes until mid-April.

14 countries in Europe closed road borders, 20% drop in e-export expected

With the closure of the border of 14 countries in Europe, delays in export loads started to occur, as a result of non-rotating trailers and containers due to the queues formed, the freight increases by 15%. In e-export shipments, a shrinkage was observed in the demands as a result of people cutting their non-mandatory shopping. İsa Korkmaz said that sales from e-commerce sites such as Amazon or Etsy are expected to drop by up to 20% even though figures have not yet been released.

“Exporters can take measures against Corona virus”

Corona virus due to be received from the exceptional situation in which the trade measures indicating Korkmaz Jesus could exit with minimal damage, proposals for companies who export from Turkey were listed as follows:

Increase your alternatives: I suggest searching for more alternatives to organize your load. You can plan your freight by comparing the sea, airline and highway options at the same time.

Be careful when making a reservation: There are changes in cancellation policies due to the location problem of many agencies. Please confirm this information when confirming your orders. Also take into account possible delays in your contracts with your buyer and seller.

Prefer partial loads: Instead of containers or complete trucks, you can distribute the risk by choosing partial freights.

Follow the developments instantly: As a result of the Corona virus measures, we see that flight bans or border measures vary from another country every day. When planning your products, get instant information from your logistics service provider.

Communicate more with your customers: Inform your customers frequently, and give you the message that you are doing your best in possible delays and cancellations.

Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55

About NavlunGO:

NavlunGO, a technology-based logistics search engine, digitizes long-term logistics bidding processes, and offers cargo owners within 1 minute by classifying the offers received from hundreds of carriers according to their needs. While the offers offered combine air, land, sea and train alternatives, they also offer 24/7 support, online payment and load tracking services.