Impact of COVID-19 on the global container shipping industry

Abstract

Purpose – This paper aims to investigate the impact of covid-19 on the container shipping industry and illustrates the challenges of container shipping flow during the global pandemic and the mismatch of demand and supply resulting from increasing consumer demands because of the lockdown. Design/methodology/approach – the paper conducted by using both secondary and primary sources of data and semi-structured interviews to (1) identify the impacts of COVID-19 on the shipping lines, freight forwarding companies and ports (2) Investigate container transport problems during pandemic and (3) Evaluate container shortage consequences. Findings – the results are in agreement with existing literature which indicates that the pandemic has negatively affected the global economy and changed the global trade network. There has been little work done to identify the damaged area in the supply chain that happened due to the pandemic, Investigate container transport problems during the pandemic, Evaluate container shortage consequences, Develop a solution in the short term to balance between demand and supply freight rates and propose a plan to face a long-term increase in worldwide containerization transport. Research limitations/implications – By identifying the impacts and challenges resulting from the pandemic, this paper allows companies which are in this industry to implement the recommendations or develop strategies which help them to find the solution of the effects and consequences of this pandemic on the industry .However, Strategies must be regularly reassessed in response to the developing and evolving nature of the pandemic. Originality/value –This research identifies the damaged area in the supply chain that happened due to the pandemic, Investigate container transport problems during the pandemic, Evaluate container shortage consequences, Develop a solution in the short term to balance between demand and supply freight rates and propose a plan to face a long-term increase in worldwide containerization transport.