All those close to, or associated with, international trade will be conscious of the significant disruptions caused by COVID-19.
Our National Cargo Product Manager, Nick Rowley, has some valuable information for exporters on how to minimise impacts to their shipments and keep trade moving.
“We’re seeing sea shipments experiencing vessel deviations, forced discharges, blanked (cancelled) or slowed sailings on virtually all trade routes, with some sea trades ceased completely due to port or country lock-downs,” he says
“Airfreight shipments have been hit hard due to the shut-down of passenger aircraft movements, with the vast majority of airfreight capacity from passenger aircraft disappearing. Charter flights and specialist freight aircraft are being utilised for the most urgent and medical equipment movements.”
He notes that shipping containers are also in short supply as they clog ships, ports, container yards and warehouses, with many full containers not being collected, emptied and returned to service, sparking concerns over the industry possibly coming to a standstill.
“Navigating these disruptions is challenging,” says Nick.
“Exporters and traders need to be mindful of their contractual obligations and heightened risks when shipping goods in the current climate, as additional shipping, deviation storage and on-forwarding costs associated with COVID-19 are unlikely to be covered by marine transit insurance.”
Some key points to consider include:
Is the trade route viable?
Will the trade chain remain viable for the period of the intended voyage?
Check with your freight forwarder and/or the shipping company
Trade contracts
The risks of trade disputes, payment delays/defaults and fraud may escalate during COVID-19 disruptions
Consider your cargo
“Be sure to seek the most appropriate advice from your broker, freight forwarder, shipping company, solicitor and/or available Government department or trade organisation,” urges Nick.
If you’re a broker and would like to learn more about this topic, you can register your interest for our upcoming webinar by emailing us at webinar@nti.com.au.