The port of Oakland’s Business Development Manager Andrew Hwang discussed about the new normal after the CPVOD-19 pandemic and cautioned that the pandemic could permanently alter container transportation practices.
Specifically, shipping lines may consolidate more cargo on bigger ships while reducing the frequency of voyages, while there is a possibility that supply chains may alter as well.
Mr. Hwang stated that about 10% of the port’s scheduled vessel arrivals have been cancelled by shipping lines, blaming the coronavirus crisis which has impacted the global trade.
Consumer spending has declined, which has led to less merchandise to load onto ships. Following, this means fewer vessels needed between Asian manufacturing centers and U.S. ports. Import volume is expected to suffer the biggest cargo decline in coming months, the Port said.
Although demand for Oakland exports holds a strong position, Mr. Hwang noted that voyage cancellations could place some markets beyond reach. Fruit, nut and meat exports are particularly coveted by overseas trading partners, especially in Asia, the Port said. It added that Oakland exports to South Korea increased 31% last month, and to Japan,18% .
On the one hand the port informed of cargo moving smoothly through Oakland, and no reports about shortages of labor or equipment. On the other hand, the port cautioned that the pandemic could permanently alter container transportation practices.
Mr. Hwang concluded that
We’ll be facing a new normal … Distribution patterns will change…it won’t be like it was.
