Covid to benefit China's Belt and Road
The Rail Silk Road could benefit because of the way the world economy is restructuring, says David Wells, CEO of FTA, for The Logistics Point. Many industries and modes of transportation will suffer and struggle to get to their pre-Covid levels. It is expected this could lead to using alternative ways of transportation that were not seen as the most effective just a couple of months ago.
‘Air cargo rates could stay at high levels for a significant period of time,’ explains Wells. This means the demand for waterborne freight will increase. Wells however says the seaborne freight will experience some turmoil because different countries went into lockdown at different times.
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As China is reopening and starting to produce and ship goods again, Europe and the UK are still closed. Materials and goods are being stockpiled and there isn’t much space to stock more. ‘The UK government is trying to come up with a solution with where the new containers are going to be stored,’ Wells explains.