Big Impact of Novel Coronavirus (COVID-19) On Dropshipping Cross-border Logistics

The recent outbreak of the virus outside of China has made the epidemic more severe. Oil price crash triggered the plunge in global stock markets, making the world's economy rattled, from which various industries are suffering at the moment.

On dropshipping business, the impact is obvious.

Previously, requested by the government, enterprises weren't allowed to resume their work immediately after the Chinese New Year holidays, which made a lot of goods out of stock. But now the biggest impact is not in China, for the increase of new cases in China has become double-digit each day. Most production and logistics inside of China are gradually recovering to their full. However, the situations in many other countries are going on the other way. For example, Italy extended the lockdown nationwide, causing the flights to be grounded, and many logistics companies have stopped receiving from or sending packages to Italy.

In recent days, we are constantly receiving notices of shipping price increases from various logistics companies. Due to the impact of the epidemic, many flights were grounded, resulting in insufficient handling capacity, skyrocketing air freight rates, and significant delays in delivery time.

The following table is the statistics of parcels sent between February 15th and February 29th based on SourcinBox data.

Therefore, during the outbreak, it is better to choose dedicated line logistics such as CNE/Yanwen/Yunexpress.

In any case, we still have to work together to overcome this difficulty. We believe that the epidemic will soon pass. During this period, instead of being anxious, we should work harder and study harder. After the epidemic, we will become stronger. Cheers.