There had been 2 main world’s events that impact import – export and international
transportation.
First is the sworn to take presidential post of Mr. Joe Biden which should seem not
concern with import export business of Thailand. But since U.S.A. is the most
significant trader of us, Thailand, we gain surplus trade balance with them during
past decades. Couple up with COVID-19 situation that tremendously impact U.S.
economic system, many main U.S. ports were severely effect that impact their
import and export business in top significant level. This made huge amount of
containers circulated in the system stuck here and there. Research revealed that
almost one million TEU’s were left unattended in many main ports and elsewhere
and if we count another substantial numbers of container sitting unutilized in Europe
which is the area effected by COVID-19 with similar degree as of the U.S.A, total
amount of containers left behind would be almost two million.
That is the main reason why container shortage situation persisted in all areas
worldwide.
It’s all depending on the attitude of U.S. former leader towards the pandemic as well
as trade war policy with China. Since their leader has been changed, tension
gradually becomes relief but this would still take some time before everything is
back in shape again.
Second event is something that takes place every year, i.e. the most festive season’s
greeting of the country with most population of the world, country with world’s
number 3 economic level and likely to develop to be number 2 or even number 1 in
not much longer time. Needless-to-say about their influence to the world economic,
since China is the country that rely their GDP on export volume, therefore, if such
influential country would stop all their business activities for a certain period during
their celebration on Chinese New Year festival, such 1 silent week can emerge high
impact to international trading as well as transportation since demand is suddenly
going down. However, sea liners have experienced this kind of situation in a yearly
basis and make themselves ready to cope with situation by reduction of sea voyages
in their normal schedule during slow week.
The situation of this and last year is much different from the past as we have to put
COVID-19 container shortage situation into account. The pause of demand from
China and liners schedule adjustment do not make any better to container shortage
situation.
Lately, there was some inference of the past incurrence that it not only substantially
reduced quantity of containers but also made freight rate sky-rocket increased. We
may claim this is as per a very common economic theory in regard to demand vs.
supply, as when demand rises with such greatly insufficient supply, the price of
goods will increase to its highest ever scheme in international transport history.
Not to mention about airfreight, since Thailand lock down and limit flights to and
from the country, passengers and tourists are not able to embark into the country.
Thailand rely their GDP mostly on export and tourist, once passenger flights are
reduced to as high as 90% of normal situation. This great lost on supply will surely
result a sharp increase of airfreight rate to also the highest ever in air transportation
history.
As long as 2 significant events have been over, new U.S. president Joe Biden is
taking his office and China resumes normal operations after a long consecutive
holidays, will there be any changes in better outlook since there has been an
anticipation that terrible situation that is carrying out throughout last 3 quarters of
2020 will still remain its effect. However, there is still some hope that the situation
will gradually resume when 2 gigantic countries, China and U.S.A. recover.
Will present you in next part, with research and statistic of some concern
organization as a guide for your future business plan.
