Virus disruptions threatens Czech logistics companies

9 March 2020

Czech logistics companies are beginning to run into difficulties connected with the COVID-19 virus. Not only are their financial reserves now becoming stretched as the volume of goods falls but there’s a lack of containers and boats are sitting idle in ports. Deliveries from China have dried up because of reduced production levels and Mlada fronta Dnes reports that disruption to the flow of goods has hit Europe. “The statistics show the fall in trade between China and the Czech Republic quite clearly,” said the General Customers Directorate spokeswoman Martina Kaňková. Chinese imports were 25 percent down in February compared to a year ago because of plant closures in China. “The fall compared to the year before is obvious,” said Josef Melzer of M+L Logistik. “There will be an even larger drop in the number of deliveries in March, which is already alarming,” said the director of the Union of Couriers and Logistics Petr Rožek. Air cargo figures were the first to crash but it’s the ships that spend six weeks transporting heavier goods from China that will really tell the story. Those arriving today left as Chinese plants were being closed with far fewer containers than usual. This has resulted in container prices quadrupling. Adding to their difficulties, truck drivers who passed through Italy in the past few days are being forced to self-quarantine themselves for two weeks. Drivers and their companies face stiff penalties for failure to comply.

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