COVID-19 and The Impact on Trading
Published 24 Jul 2021
It’s clear how COVID-19 has crushed many businesses from various industries in 2020. The World Trade Organization has predicted that world merchandise trade could sink around 13 – 32% this year, following the impact of COVID-19. The adverse effects of coronavirus on globalization may drag on for years, just like what happened with the 2008 financial crisis. It’s not all doom and gloom though, as this crisis has also opened up opportunities for various countries to adjust and meet their full potential.
Diversify Your Supply Chain
If there is one thing that COVID-19 has revealed, it is how vulnerable the global supply chain is when faced with a crisis. Issues such as depleting (or idling) stock, orders not fulfilled on time, spikes on the demand of certain products have surfaced across the globe.
The COVID-19 outbreak is likely to result in longer-lasting adjustments of supply chains to build resilience, so its the best time for companies to diversify supply chains across other possible countries such as Vietnam, Taiwan, and Malaysia – in response to shifting trade policies.
Road To Recovery
As change is the only constant, we need to be positive about what this means to the industry. With adversity, there is opportunity – which is why companies are now cutting costs, streamlining processes, and restructuring to become even better than they were previously.
And by learning how to diversify the supply chains to prevent severe disruptions, businesses will now be more well equipped when a crisis of this magnitude surface once again in the future.
How We Can Help You
The implications of the COVID-19 pandemic may last for a long time, and the trading world will need to constantly adapt to the new environment. There is a pressing need to keep trade flowing, to ensure the supply of essential products and for the recovery of the global economy. This is a particular challenging time of trade tensions, where international trade was already overwhelmed with an increased number of new restrictions, from tariff increases among major traders, to significant government support in key sectors.
At Willship, we are here to help you. We can provide services well beyond import clearances and transport to meet your shipping needs. You may move 1 shipment per month, but we move them by the hundreds. And that can change your business for the better, while propelling it into the direction of sustainable growth.
May the lessons learned, and the road to recovery post-COVID-19 bring greater resilience to businesses and the trading world from this point forward.