Home » 3PL/4PL, Breaking News, Maritime, Ports/Terminals » Coronavirus likely to take a bite off PH cargo volumes

Cargo shippingThe Philippine Ports Authority (PPA) expects a slowdown in cargo throughput as a result of the novel coronavirus outbreak which started in China, the Philippines’ top source of imports.

The anticipated drop is coming at a time when cargo traffic is usually slow after Chinese New Year. The situation will not be helped by the extended Chinese New Year ordered in many parts of China to restrict movement of people. Work only resumed last February 3.

The disease has killed 565 people, mostly in China, and infected more than 28,000 people in over 25 countries and territories as of February 6.

PPA general manager Atty. Jay Daniel Santiago in a press conference on February 5 said around 83% of cargoes coming into the Philippines are from China, Hong Kong, and Taiwan; cargoes from Europe, the Middle East, and the United States also pass ports in those areas.

Dahil sa nangyaring ito, inaasahan natin na baka magkaroon ng slowdown ng mga produkto galing sa China dahil nga sila din ay preoccupied o iniintindi nila yung sarili nilang problema sa pagharap nCoV virus (We expect a slowdown in goods coming in from China as China will be preoccupied with fighting the virus),” Santiago said.

China accounted for 22.9% of the Philippines’ total import bill in November 2019, based on data from the Philippine Statistics Authority.

According to a recent analysis of logistics and supply chain research and consultancy service provider Transport Intelligence, the shipping industry is biding its time before making wholesome revision to services. The Chinese New Year has already led to reduced capacities, and lines are adopting a “wait and see” attitude before blanking additional sailings.

The World Health Organization has declared nCoV ARD—which was first detected in Wuhan, Hubei, China—as a public health emergency of international concern.

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