Analysis – COVID-19 does not seriously infect ports yet, but panicked politicians might contaminate their business

Vienna, Austria (Ports Europe) April 8, 2020 – Italy, Spain, France - where the major Mediterranean ports are - have tens of thousands of cases of SARS-CoV-2 virus infection and thousands of deaths attributed to the COVID-19 disease. But all the ports there are reporting relatively normal operations and are implementing measures to lower the infection risk for their staff and clients. The situation with COVID-19 pandemic is similar for the ports in the Black and Caspian Seas, where cargo traffic is flowing. The real victim of the SARS-CoV-2 virus is the cruise industry, whose ships and tourists practically disappeared from the ports. But the imposition of harsher and stricter restrictions on movement of people, the requirement for businesses to operate with reduced number of employees and the lack of targeted support for port operators and the business of port-related companies, might create a problem in the future. The inadequate reaction of south and east European governments might prolong the blockade of business activities, hamper manufacturing and deprive ports of export goods. Slow and bureaucratic official reactions to the pandemic in Italy and Spain, in Romania and Bulgaria has already destroyed the manufacturing process. And as usual, Russia is simply in a denial mood and its antiquated health system will collapse soon. The situation is very different with imports, and especially with imports from China. Recent data suggests renewed activity in the flow of goods across China, as well as at ports worldwide that do business with China – the country where the SARS-CoV-2 virus appeared first, most probably already in October 2019 (the official version of local authorities is that the virus was first detected in December 2019). If the paralysis in Europe and the United States continues for much longer, Chinese shipping and logistics companies will be able to dramatically expand market share and replace Western-led value chains. China already claims that manufacturing activity in the country expanded in March, defying expectations of a contraction. In February, the official Purchasing Managers’ Index hit a record low of 35.7. It bounced back to 52.0 in March. After the ports shopping spree by China state-owned companies in the Mediterranean region, prepare for a worldwide wave of Chinese acquisitions at knockdown prices. Most probably, next on the Beijing priority list are investments in or takeovers of ports in Russia, Ukraine, Romania, Bulgaria and Georgia. Copyright (C) Ports Europe. All Rights Reserved. 2020.

Analysis – COVID-19 does not seriously infect ports yet, but panicked politicians might contaminate their business

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Analysis – COVID-19 does not seriously infect ports yet, but panicked politicians might contaminate their business

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All news

1.2 tonnes of cocaine seized in Spain’s Algeciras port

Four tonnes of cocaine seized off the Canary Islands

Russia’s ports handled 4.6 mln TEUs in Jan-Oct’24

New Caspian ferry line Turkmenbashi-Olya might finally launch

Kazakhstan’s ports handled 6.2 mln tonnes of cargo in Jan-Oct’24

Our Expert Analysis

Latest Free Reads

Top Ports