Floating quarantine: Global shipping hit by the coronavirus , goods are getting stranded

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Global shipping has been hit by the coronavirus. Now goods are getting stranded

By Hanna Ziady, CNN Business
Wed February 5, 2020





London (CNN Business)The arteries of global trade are clogging up.

Shipping companies that carry goods from China to the rest of the world say they are reducing the number of seaborne vessels, as measures to stop the spread of the coronavirus crimp demand for their services and threaten to disrupt global supply chains.
About 80% of world goods trade by volume is carried by sea and China is home to seven of the world's 10 busiest container ports, according to the United Nations Conference on Trade and Development. Nearby Singapore and South Korea each have a mega port too.


Cruise stocks drop as 7,000 are held on ship in Italy

"A closure of the world's manufacturing hub impacts container shipping at large, as it is a vital facilitator of the intra-Asian and global supply chains," said Peter Sand, chief shipping analyst at BIMCO, an international shipping association. "This will affect many industries and limit demand for containerized goods transport," Sand told CNN Business.
Everything from cars and machinery to apparel and other consumer staples are shipped in containers, and disruption to the industry could reverberate far beyond China as the country seeks to contain the coronavirus outbreak by keeping factories shut and workers at home.
The longer the health crisis lasts, the harder it will be to move goods around the world. The coronavirus outbreak has killed more than 560 people and infected at least 28,000 — mainly in China, where close to 60 million people are living in cities on lockdown.
Already, carmaker Hyundai (HYMTF) has suspended production at its plants in South Korea because of a disruption to the supply of parts caused by the coronavirus outbreak in China, the company said in a statement.

Floating quarantine

The shutdowns mean that some ships can't get into Chinese ports, as the loading and discharging of goods slows, said Guy Platten, secretary general of the International Chamber of Shipping, a trade body. Others are stuck in dock, waiting for workers to return to ports so that construction and repairs can be completed, Platten added.
Still more vessels are idling in "floating quarantined zones," as countries such as Australia and Singapore refuse to allow ships that have called at Chinese ports to enter their own until the crew has been declared virus-free, added Sand. Platten said he knew of at least one crew that is running low on food because their ship has been idled for so long.
Giant shipping companies such as Maersk, MSC Mediterranean Shipping, Hapag-Lloyd and CMA-CGM have said that they have reduced the number of vessels on routes connecting China and Hong Kong with India, Canada, the United States and West Africa.


Tugboats guide a Maersk container ship at the Yangshan Deepwater Port, Shanghai.

The shipowners say that moves to idle Chinese factories beyond the end of the Lunar New Year has curtailed demand for vessels and forced them to adjust their capacity during what is already a low season for shipping because of the Chinese holiday.

https://www.cnn.com/2020/02/05/busin...act/index.html

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Dow plunges 1,000 points, gives up gain for the year


Stocks fell sharply on Monday, with Dow Jones Industrial Average losses reaching more than 1,000 points. The number of coronavirus cases outside China surged, stoking fears of a prolonged global economic slowdown from the virus spreading.
The Dow traded 1,023 points lower, or 3.5%. The S&P 500 slid 3.4% while the Nasdaq Composite traded 3.9% lower. It was the biggest percentage drop for the S&P 500 since October 2018 and it was the biggest Dow point drop since February 2018. The Dow and S&P 500 also gave up their gains for 2020.

cnbc.com/2020/02/24/us-futures-coronavirus-outbreak.html

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Lot of blood in the streets on cruise stock like RCL CCL and NCLH. Probably a buy.

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Still increasing uncertainity.


Coronavirus live updates: China reports 44 additional deaths, Moody’s warns about global recession

Published Thu, Feb 27 2020 7:10 PM
cnbc.com/2020/02/28/coronavirus-latest-updates-china-hubei-south-korea.html

Odds of a coronavirus pandemic have doubled to 40%, says Moody’s Analytics
Published Thu, Feb 27 2020 10:45 PM EST
Yen Nee Lee@YenNee_Lee

Key Points

• Cases of the new coronavirus disease are rising quickly outside China, and the odds of the outbreak turning into a pandemic have now doubled — from 20% to 40%, according to a report from Moody’s Analytics.
• “Our previous assumption that the virus will be contained in China proved optimistic, and the odds of a pandemic are rising,” said the firm.
• A pandemic will result in global and U.S. recessions during the first half of this year, Moody’s said.

cnbc.com/2020/02/28/coronavirus-odds-of-a-pandemic-doubled-to-40percent-moodys-analytics-says.html

DOW -1190
BIGGEST DROP IN HISTORY

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Common theme here . China is always screwing stuff up. It is a virus pit.

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Coronavirus epidemic: U.S. retailers could see some empty shelves by mid-April

Production bottlenecks could cause some bare shelves at brick-and-mortar retailers within 60 to 90 days, retail analysts warn.
Former surgeon general: Focus on 'preparation, not on panic'

Feb. 27, 2020
By Ben Popken

Coronavirus has the potential to become a global pandemic, temporarily emptying retail store shelves in the coming months and depressing some consumer-facing businesses, experts say, with government officials advising families to take measured steps to stock up on certain essentials.

A pandemic is the rapid spread of an infectious disease to a large amount of people in a short period of time across international boundaries.

Ahead of any pandemic, the Department of Homeland Security says families should check their prescription drug supplies, store two-week supplies of water and food and have non-prescription drugs and health supplies on hand, including pain relievers, cough and cold medicines and fluids with electrolytes.

Full coverage of the coronavirus outbreak

The Centers for Disease Control and Prevention does not recommend that consumers buy masks, saying they should instead focus on regular hand-washing. The only people who would benefit from masks are those exhibiting symptoms, to help prevent them from transmitting the virus, and front-line health care workers.

Panicked hoarding could create shortages of otherwise sustainable supplies in a self-fulfilling "run on the bank" scenario. In one Italian town, videos showed panicked shoppers trading blows and stripping shelves of pasta and other staples.

nbcnews.com/business/consumer/u-s-could-see-some-empty-shelves-mid-april-if-n1144351

4:06 pm: Shockingly bad China economic data

China’s official Purchasing Managers’ Index (PMI), a gauge for its manufacturing sector, plunged to a record low of just 35.7 in February from 50.0 in January, the National Bureau of Statistics said on Saturday. Any reading below 50 signals a contraction. The somber reading provides the first official snapshot of the state of the Chinese economy since the outbreak of the coronavirus epidemic which has killed almost 3,000 people in mainland China and infected about 80,000.— Li

4:02 pm: Coronavirus latest: Cases total more than 85,000; Rhode Island confirms first east coast case

More than 85,000 coronavirus cases have been confirmed worldwide along with at least 2,943 deaths related to the virus. The U.S. confirmed its first virus-related death. The state of Rhode Island reported the first coronavirus case in the east coast of the U.S. Coronavirus cases in Italy surged this weekend to more than 1,100 cases while Iran has confirmed more than 900 cases. A surge in coronavirus cases outside of China sent global stock markets tumbling as investors fretted over a possible economic slowdown. —Imbert

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Lot of blood in the streets on cruise stock like RCL CCL and NCLH. Probably a buy.

You might be on to something major, cruise operators like NCLH has had very dramatic drop.

https://bigcharts.marketwatch.com/qu....asp?symb=nclh

[Krugminator2]

You might be on to something major, cruise operators like NCLH has had very dramatic drop.

https://bigcharts.marketwatch.com/qu....asp?symb=nclh

I am idiot. I know nothing. I stepped out of my core competency and bought those things. Most painful lesson of my life. I lost staggering amounts on those. I broke every rule of speculation. I just looked at PEs and book value and assumed this crisis was nothing. Didn't cut losses, etc.

But Pence basically said in so many words they wouldn't let the cruise industry fail after meeting with execs at the press conference yesterday. Trump said he would help travel industry companies in the press conference if they asked for help. The fact is NCLH is trading at a 1/3 of book value with a low single digit PE and they JP Morgan has enough confidence in them to extend a massive credit line with a 1 year commitment. If they just weather the next few months and the virus goes away the stock *should* triple over the next couple of years as they do well against the poor earnings of the next couple of quarters. But it is trading like it a sure bankruptcy, so I don't know. Most painful lesson of my life that's for sure.

The issue of Barron's that came out today is all doom and gloom. And they have a section on the cruise ships being done. Barron's is dumb money and tends to be a good contrarian indicator. But I don't anymore. The cruise ships trade like they are going BK.

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Sorry to hear that, that is tough. Hopefully you'll be able to make up for it later.
Heard some expert the other day say that markets tend to overshoot in either direction. I'm no expert but it seems uncertainity is slowly starting to decrease and it may take some time before things stabilize.
You seem to know more than many but mistakes can happen by anyone.

https://markets.businessinsider.com/...0-3-1028989893