COVID-19: Brace for Financial Impact

Feb 18, 2020 | Article, News

The first case of what was then a mystery illness was reported in December 2019. Rooted in Wuhan, the capital of Chinas’ Hubei province, the city has a population larger than London or New York, with over 11 million residents. Wuhan is one of Chinas’ key cities for manufacturing and exports.

As the virus quickly spread across Mainland China, the Chinese Government has taken an unprecedented, broad and aggressive approach to limit the spread within the country and stop the spread globally. The precaution measures adopted have started to show signs of effectiveness, as daily statistics of infections and deaths begin to slow. Such precautions will also, inevitably, have a large economic consequence in many sectors.

Hubei Province, the key infected area with most cities under strict lock-down, is typically accountable for 80% of China’s GDP. The province itself is a fundamental supply chain hub, accounting for 90% of China’s exports. 

Data collected from key Chinese ports indicates that the turnover rate of daily containers has dropped by 20% since 20th January 2020. Covid-19 containment measures are impacting the total volumes from main ports of China (including Hong Kong) to reduce by more than 6,000,000 TEUS. It is anticipated that an overall 0.7% reduction of volume will be felt in 2020. 

The actions taken to limit the spread of the virus will have a negative impact on global supply chains, presenting both challenges and opportunities in the coming year. The severity of COVID-19 has posed a worldwide threat claiming 1,873 lives globally to date, of which 1,868 lives have been claimed in Mainland China. There is still not enough research or evidence to draw final conclusions, but despite the negative economic impact, containment of the virus remains a priority and a global social responsibility.

If you require any specific industry updates’ please do not hesitate to contact the Uniserve Coronavirus Helpline team on 01375 851 346 or by emailing us at info@ugroup.co.uk

FOLLOW US

Unrivalled Ocean Freight

Unparalleled choice and flexibility are synonymous with the UK’s leading Ocean Freight provider.

Award Winning Airfreight

Our record breaking (five times) BIFA Airfreight Award winning team eagerly await your enquiries.

Premium European Services

The UK’s leading independent provides quality services to and from all major locations across Eastern and Western Europe.

Unrivalled Ocean Freight

Unparalleled choice and flexibility are synonymous with the UK’s leading Ocean Freight provider.

Award Winning Airfreight

Our record breaking (five times) BIFA Airfreight Award winning team eagerly await your enquiries.

Unrivalled Ocean Freight

Unparalleled choice and flexibility are synonymous with the UK’s leading Ocean Freight provider.

Keep in Touch

Please subscribe to receive a monthly newsletter of our latest news and articles.
More News…..

Please Share This Article

It only takes a couple of clicks and it would be greatly appreciated! Many Thanks