The COVID-19 pandemic has emerged as one of the most disruptive global events of recent times. The coronavirus has already resulted in over 200,000 deaths and has infected over 3.6 million people around the world. Almost all industries globally have been negatively impacted by this pandemic. COVID-19 has also had a significant impact on international trade, disrupting supply chains, reducing trade volumes, and limiting product availability, causing serious concerns for traders.
According to estimates, the global trade volumes during the year 2020 are expected to decline sharply and the EU &UK are not immune to this crisis. The rapid rise of globalisation has meant that products are being sourced from all over the world, making it harder for traders to conduct their business in a usual manner.
To prevent the virus from spreading even further, more than half of the world’s population has been currently placed under lockdown. All the national borders within the Schengen area have been closed by the respective governments. Similarly, the borders between European nations and the rest of the world are also either fully or partially shut. This has meant that the movement of goods has also been impacted indirectly and the time taken to process international transactions has gone up significantly. Further, freight capacities have also decreased as border checks have become much more stringent, presenting major challenges.
A majority of factories and units have also been closed globally, resulting in the reduction of goods production. This decline has made it increasingly difficult for traders to source their products from their usual sources, causing many to opt for different supply options. This brings with it a range of risk factors concerning product origin. For instance, the German traders who were importing textiles from Bangladesh have had to cancel or postpone their orders because manufacturing facilities in the Asian nation have been temporarily shut down. The virus has now spread to all parts of the world, making it hard for the traders to source the garments from other nations too. This has resulted in a vicious cycle that is hurting the global trade industry to a great extent.
The global lockdown has adversely impacted on the import and export of luxury goods. Most of the retail stores are currently closed, and with consumers only purchasing necessities, the sale and import/export of luxury items are almost non-existent.
The global trade industry is also battling a shortage in terms of human resources. With multiple workers either choosing to stay at home or only working partial hours, the production of critical goods has been significantly impacted. With the demand for these good reaming high, sourcing and delivery is becoming a major challenge and even where a product is available for import, the entire process is being delayed due to manpower issues.
The coronavirus pandemic has had a significantly negative impact on the global trade industry. The import and export processes have been disrupted, and it is becoming extremely hard to source products. In this current climate, it becomes imperative that traders seek the help of experts to help them streamline their export and import process. One of the most effective ways to achieve this is through the implementation of software solutions that also automate the sourcing of products.
In order to ensure that the disruption is minimised, we can help traders in the UK and the EU with customised global trade management solutions. Our software helps businesses keep track of all their transactions, speeding up the documentation process, as well as ensuring that payments are processed smoothly. Please contact us to find out more about how we can help your business during these uncertain times.