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International Shipping
Virus-driven volume drops 8pc in Virginia to 20,720 TEU in March
Date:2020-04-23 Readers:
THE Port of Virginia's March cargo volumes were down eight per cent year-on-year to 20,720 TEU as the shipping industry grapple with the effects of the coronavirus on world trade, reports the American Journal of Transportation.
 

"As we predicted, the impact on our volume continues, but the good news is that indicators show China's manufacturing sector gaining strength and the cargo is beginning to flow,"said Virginia Port Authority CEO John Reinhart. "We knew cargo flows through the spring would be slow and have adjusted our forecasts accordingly.

"The lack of demand driven by covid-19 has resulted in ocean carriers reducing their network sailings by 20 per cent for the second quarter of 2020 and we know our volume will remain weaker during this period. There are still some tough weeks ahead and we don't have high expectations for April volume,"Mr Reinhart said.

Laden export boxes were up nearly 1,500 TEU, or 1.7 per cent, and the volume at Richmond Marine Terminal grew by nearly 780 units, or more than 28 per cent.

For the third consecutive month, the number of empties for export fell. In March, export empties fell nearly 36 per cent to 15,365 TEU, as a result of the uncertainty being created by the virus.

Mr Reinhart said as more Chinese manufacturers restart their operations, the demand for empty export containers will increase.

"One of the effects of this virus on trade is a decreased demand for empty containers,"he said. "This will change and when it does, it will indicate more production and result in increasing volumes. There is always a normal gap between a restart of manufacturing and receipt of goods, but what we are seeing is the pipeline that brings cargo to the US beginning to be slowly refilled."

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