This past year has been a difficult time for just about everyone. The development of the COVID pandemic created an unprecedented situation. This has created a severe medical crisis that quickly spread all over the world that quickly spiraled out of control and created an economic one as well. As numerous countries scrambled to try to limit the spread of this deadly virus, many economies were forced to shut down. Now, international shipping is facing a difficult time as well. How has the pandemic impacted international shipping? What does the future hold?
Disparate Regulations Make it Hard To Plan
When it comes to professional shipping companies such as Craters and Freighters, paying attention to local regulation is required for success. For example, cargo in one part of the world may face tighter restrictions than cargo in another part of the world. This is one of the biggest logistical obstacles that the international shipping community faces today. Even if businesses in one part of the country are able to open, the country from which they are receiving their shipping may not be open. As a result, this can lead to significant supply chain disruptions.
Breach of Contract Cases Could Be On the Rise
Another major issue that small businesses might be facing involves breach-of-contract cases. Particularly when it comes to businesses that operate over International borders, breach-of-contract cases are going to be a reality in the next few months. Because businesses might not be able to fulfill their orders are due to inventory being held up somewhere else, they might be in danger of breaching their contracts. The same could be true if businesses do not have the revenue to pay their suppliers due to limitations posed by the pandemic.
It is important to note that some international shippers might have a clause in their contract called a force majeure clause. In this situation, they may be able to claim this clause and avoid being found in breach of contract. This is something that will have to be argued in a court of law.
Adjustments for Increased Safety and Security
Finally, similar to other industries, those who work in international shipping have had to adjust their operations in order to improve their safety and security measures. This might include instituting social distancing among their employees, enforcing maks regulations, and changing the way they sterilize their shipment containers in between orders. All of this is important for making sure that people stay safe; however, this could increase the amount of time it takes business is to follow their orders while also increasing overhead costs by changing the equipment they use.
Looking at the Future of the Industry
These are just a few of the many ways that this industry has been impacted by the pandemic. Even though there are reports that a vaccine has been completed, it will be a while before this vaccine is distributed widely. Therefore, those in this industry need to be prepared for these disruptions to continue.