The closure of the borders to contain the spread of COVID-19 has impacted not only tourism and business travel, but also international trade & supply chain.
Law firm Baker McKenzie recently estimated global trade fell 4 per cent during the first quarter of this year – only the second time it has plunged so deeply since the mid-1980s. The IMF predicts imports and exports in advanced economies will each fall by more than 11 per cent this year, “far worse” than the 2008-09 financial crisis. An idled economy needs far less transportation capacity, and a massive idling of ships, trucks and airplanes is already under way. But modern countries still require fertilizers, grains and food. They still need disinfectants to treat drinking water. The products still wanted and needed by consumers is moving through transportation networks that have become far more unpredictable and unreliable – leading to logistical nightmares and increased costs.
Of all the major modes of transport, air cargo seems to have been most affected. That’s because passenger aircraft carry large volumes in their holds – meaning that the suspension of passenger flights globally has resulted in a significant reduction of airfreight capacity, posing a massive challenge in the timely delivery of all types of cargo, especially refrigerated cargo.
Freight forwarders, which facilitate the movements of goods worldwide, are among the many parties grappling with this logistical whiplash. The constant changes in rates and frequent frequent last-minute cancellations are forcing them to search for alternative ways to ship goods.
Join the Brazilian-Canadian Chamber of Commerce this Friday, April 24th at 1:00 PM for a conversation with Arnon Melo, President at MELLOHAWK Logistics to understand what are the available solutions for companies looking to move reefer cargo between Brazil and Canada.