19 Feb The Coronavirus Disrupts China Shipping and Steel Production – Impact Expected to Be Felt Everywhere
The Coronavirus has adversely affected several industries in China. Many industries have reduced production and are expected to fall even further behind because of the lack of mobility for some workers due to quarantines. Steel production is also declining rapidly because of the necessary materials have had a hard time reaching the manufacturers. There are a few industries that can withstand the hit, however, many will remain affected for the foreseeable future. The decline in steel production is likely to affect many businesses around the world who depend on Chinese made parts. China also accounts for 40% of dry bulk cargo imports, according to the article, which also should serve to affect the global economy.
- A “severe grade escalation scenario”, which many industries are approaching, will cause shutdowns of Chinese based factories outputs. They will also find that their port operations will be severely limited.
- China is said to have 40% of the world’s dry bulk cargo imports. The impact of the Coronavirus could impact many economies outside of China.
- The markets relating to tankers have had to weather most of the storm caused by the Coronavirus.
“We add a moderate escalation scenario in which disruption continues into March and there’s some restriction on port activity over that period of time, which again implies further downside risk to vessel earnings.” (Kent, 2020)
Read more: https://splash247.com/shipping-should-shrug-off-coronavirus-but-escalation-risks-supply-chain-contagion/