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How the Coronavirus Impact Shipping Rate and Time

Create Date: 2020-03-21 11:50:55

Some dropshippers complain about the shipping delay and shipping rate increase these days, particularly the shipping rate increase because of the coronavirus. It's true that CJ has increased the shipping rate of some shipping methods such as ePacket, CJPacket, USPS and the like. However, that's not what CJ wants, not dropshippers want and nor final customers.

Let's have a first look at what is now happening in the world.

What's the update of coronavirus now?

As of March 21, 2020, 09:39 GMT, 277,312 coronavirus cases are confirmed across the globe. The majority of confirmed cases are distributed in Western Europe and the U.S.A.

What's the situation of international flights?

Many airlines announced to cancel all or reduce flights to and from Mainland China. Delta Airline announced on Feb 6th that all flights between China and USA would be canceled until May 31st.

According to CNN, IAG Cargo on Monday announced all services to and from mainland China for at least the remainder of the month.

What's more, many well-known European airlines including French airline Air France, Germany airline Lufthansa, Dutch airline KLM Royal Dutch Airlines announced to cancel or reduce all flights between China and Europe.

According to the Civil Aviation Administration of China (CAAC), the number of international flights from China between March 23 to 29 is 2003 while this number is 2072. There is a tendency that the flight number still goes down.

How is the shipping affected?

1. The shipping cost increases a lot. As is known, nearly all parcels in cross-border e-commerce surely including dropshipping are shipped by air, which is much faster than by sea. Under the situation of sharp decrease of international flight, every logistics company is hurry to get on board. All of us know that's impossible so final winners are those who can bid higher price, thus the shipping rate will undoubtedly go up. Price is determined by demand and supply. The logistics companies will add the increased price to their clients, for example, CJ. This is the reason why CJ raises the shipping rate frequently these days because shipping rates change by minute. Prices changing each day, that's  why CJPacket increase its shipping rate for different countries. But CJ will adjust the shipping rate of the increasing shipping methods now as it used to be once logistics companies restore their price as the situation tight flights become better.

2. The transportation time will be extended. As is mentioned above, the demand for international flights is tremendous while available flights are quite limited. That will lead to lots of goods waiting in line. Some lucky ones may wait for 2-3 days but those unlucky guys have to wait for half a month, which greatly prolongs the shipping time. Fortunately, CJPacket will not be affected that much as ePacket and some other shipping does. ePacket now may take 30-50 days to successfully deliver while CJPacket uses 10-20 days. Some customers are irritated by unwanted delays. However, there is no other better solution currently. Additionally, more delays may happen due to the different situations of destination countries. CJ will not accept disputes and reshipments if many delays happened after parcels arrive at the destination countries.

How long will the price increase last?

It is closely related to when the coronavirus ends or to say basically under control. According to BBC, Prime Minister Boris said within 12 weeks the UK can 'turn the tide'. But that's far away from the end.

Actually, no one can predict when the coronavirus will come to an end. Some scientists said it will take a couple of months. Pessimist believes this corona will last until the end of 2020, even longer.

According to Chinese experience, it is possible to take 2 months to hold this corona under control as long as people just stay at home and keep social distance when out for necessities. Or the corona will keep spreading and continue for a longer period. If so, more international flights will be canceled and international shipping capacity will be limited more, even unavailable, let along adjust down the shipping price.

CJPacket is able to ship anti-virus parcels like facemask now with increased shipping costs. If the situation still gets worse, there is a probability that CJPacket is unable to ship medical stuff.

CJ may continue increasing shipping price of some shipping methods near or far for some countries. But CJ hopes it known that price increase is not CJ's  intent, nor yours, dropshippers', neither buyers'. CJ do hopes this COVID-19 ends soon and hope everyone away from the corona and keep safe forever!