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Coronavirus outbreak in China and Britain left the European Union has started to Impact Trade with Pakistan

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Cargo Sector
Posted on 14 Feb 20

Due to the spread, many operations have been halted for safety purposes

China is a big trading country in the world and the second-biggest economy. Coronavirus outbreak in China has started to impact trade so does the cargo service providers. Due to the spread of the deadly virus, many operations have been halted over safety concerns which may follow by more such steps.

British Airways suspension of operation for China encourages other flight operators to follow so cargo movement has slowed down. Such an unforeseen scenario could put the cargo industry to halt and airports could have deserted Freight Forwarding areas.

New Year holidays in China have been extended so production was already stopped which would now prolong. Britain has finally left the European Union so a lot of new things will come to the surface and every industry has to face a situation where adjustment would require time.

Cargo Services
Cargo Services

Two big events for the United Kingdom could have jolted this trade hub but the authorities have plans to tackle every situation. Transportation of goods remains smooth and cargo companies keep doing their job in Britain.

The biggest concern of breaking 47 years long relation is trade with the European Union so exports to Pakistan from UK will keep going in the same manner.

On the other hand cargo to Pakistan

Overall air cargo volume is also going to decrease and this is only possible after the contraction of business of companies offering air cargo services. On the other hand Cargo to Pakistan from UK and other growing markets may increase but no immediate shift is possible.

Sudden changes like an outbreak of a disease which takes the form of pandemic push airlines to stop operations for particular destinations take a considerable long time to recover to normal conditions. Britain’s shift from European markets to other destinations around the world is also a time taking process.

There is a very optimistic approach too

No immediate solution is available to any stakeholder of the cargo industry so they will suffer losses in different shapes other than a direct decrease in air cargo volume. No direct flight to one of the world’s trading hubs means losing a big chunk of business.

There is a very optimistic approach too which foresee increased demand for cargo services on the restoration of normalcy. Limited operations to and from China results in limited space and price of this space will increase.

Britain exports are simultaneously facing two challenges

Warehousing at some destinations will face an unpredictable situation as a flow of goods stop. Multi-faceted impact of pandemic diseases directly hit the cargo industry. As air cargo industry directly linked to trade and flight operations so the effect is also direct.

Britain exports are simultaneously facing two challenges and the key to tackle both are in acting fast and planning before time. No more passenger flights to China means the belly-hold capacity of cargo will shift to freight planes.

There is another expectation in this situation and it is more business for ocean freight service providers. There are no reports of spreading disease through movement of cargo so it is expected that things keep moving and will not stop like passenger planes have been stopped.

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