Following the effects of the Covid pandemic, giant container ships that take goods from China and the Far East to western consumers faced delays at ports. Also, although the flow of goods is weighted from East to West, ships on the return leg from Europe and North America were also affected as blockages built up in global trade lines.
As the pandemic grew, the shipping industry was hit with new problems, such as seafarers being stranded on ships because of controls aimed at halting transmission of the virus between countries. Sailing schedules were thrown into chaos as well, leaving vessels out of place.
Tough measures to control coronavirus meant China’s economy was one of the first to get back in gear, but by then the virus had gone global, throwing up new challenges. What had looked like a huge problem for the shipping industry became a tailwind. The scarcity of containers pushed up shipping prices to near record highs.
According to data from shipbroker Braemar, the cost of shipping goods from China to Northern Europe - one of the most popular trade routes - by the end of 2020 quadrupled from levels at the start of the year, with the index measuring it touching 8,500, compared with an average over the previous years of 3,000.
This means that, instead of sinking container trade, coronavirus has lifted it, as locked-down populations in the West unable to spend money going out look to ease the boredom with online shopping.
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