April 24, 2020
As a means to curb the spread of the pandemic, governments continue to enforce measures which keep bringing much of global activity to a halt.
While there exist a wide range of possibilities for economic outcomes subsequent to these initiatives, the World Trade Organisation forecasts unavoidable declines in global trade between 13% and 32% as a result of the Covid-19 pandemic – summarized in two distinct scenarios: a relatively optimistic one and a more pessimistic one comprising of a prolonged and incomplete recovery.
However, though the WTO mentions that all regions will suffer double-digit declines in exports and imports in 2020, exceptions are being applied to territories comprising of Africa, Middle East and Commonwealth of Independent States including associate and former member states. Though this assumption is based on the premise that countries in these regions rely heavily on exports of energy products, demand for which is relatively unaffected by fluctuating prices, the recent drop in fuel prices could eventually result in forecast reviews.
With the US and Chinese being much hit by the pandemic and both adding up to 21.9% of global export in 2019 and 24.2% of the world’s import share during the same year, a value chain disruption is most likely to happen.
As we continue to monitor the evolution, please find below an update of the situation in the territories we are present and some power trade lanes:
Earlier this week, major announcements were made regarding the port storage charges as well as the temporary shortened cut-off time for export containers.
To view all updates for this week, please visit: https://www.velogic.net/covid19
Many airlines have notified about their intention to schedule specific cargo flights to and from Mauritius so as to maintain the flow of air freight shipments. While flights have already been organised and cargo has been able to move, we request customers to reach out to our teams, should there be any pending order – for both import and export.
With the lockdown being maintained until May 11, 2020, there is presently a growing need of masks in France so as to mitigate the proliferation of the Coronavirus.
Based on this demand, the Velogic France team is assisting customers in the movement of healthcare-related commodities, including masks – specially from China.
Our team in France is expected to handle shipments with over 2 million masks in the next few days – which will help to fulfil the present market needs.
The other origins where we are providing support to our customers are from Turkey and Madagascar – where export of masks by freezone companies is no more prohibited.
To get specific updates on the various regions in India, read the Velogic India Customer Advisory by clicking here.
Further to the previous situation whereby exporters were in discussion with the government for the export of masks, a decision has been taken in favour of the freezone manufacturers.
As such, our team at Velogic Madagascar has triggered the procedures in view of supporting our customers for the export of masks.
Yesterday, the National Board of Revenue (NBR) has ordered the concerned authorities to transfer all types of import-laden containers from Chittagong Port to 19 private inland container depots (ICDs) in the district. This initiative has been deployed in view of avoiding possible congestion and heavy yard inventory.
While there are no other major change on the logistics side, it has been decided that this policy will remain in force until June 30, 2020.
Please do not hesitate to liaise with your usual contact person at Velogic, should you have any queries regarding this announcement.