“The effect of Covid is far from over,” Verus Global CEO Jackson Meyer says that consequences of coronavirus continue to mount for trade industries.
The shipping and freight industry has not recovered since 2020 and is plunging into worse conditions, is the industry assessment given by Freight Forwarder Verus Global CEO, Jackson Meyer. The mounting challenges identified by Jackson include increased delays, higher direct costs, and higher demand with lesser supply. Delivery time reliability averages have plunged to 57% globally and there is no recovery in sight.
“The shipping and freight industry has not recovered from the troubles of 2020 and is plunging into even worse conditions, ” says CEO Jackson Meyer. “Sadly, we don’t predict a recovery any time soon; strong demand, limited capacity and enormous equipment scarcity is causing on-going havoc for shipping.”
A feeling of normal life is returning for many Australians but major international events and crises continue to affect our ability to import and export goods. Specifically, this includes attempts to fulfill significant surges in US demands taking up already reduced resources and the current catch up after Chinese New Year closure, while more globally an increase in demand, minimised capacity and enormous equipment scarcity continue to create chaos for importers and exporters.
“Particularly in the US where heavy congestion is continuing to be impacted by Covid shutdowns and record high surges in import volumes. This has a ripple effect on all other trades, the US is the highest yielding trade so shipping line suppliers are devoting the majority of their resources there to maximise financial benefits,” he says.
Import and export is pertinent to Australia which relies heavily on international trade and once focus turns from national issues, this will become increasingly impactful on the nation’s recovery.