The impact of COVID-19 pandemic on transport costs

The cases

The global wine market has also been affected by the pandemic!

We have already noted that the COVID-19 pandemic has had significant impact on the transport sector and the related distribution problems.

Since the beginning of the pandemic, transport and logistics costs have grown considerably, with an incessant rise in the price of freight rates (principally in trade from China). Also the container shortage must be considered with regard to the sea transport. The truck transport also faces many challenges due to the complications linked to COVID-19 infections and especially to the recent increase in fuel prices. The increased prices inevitably affect the transport costs for companies. In this article we talked about IKEA that has announced prices at its stores will increase to compensate for the increase in transportation and raw material costs. Another significant example for our territory is linked to the wine market. In fact, wine transportation costs have increased during the Pandemic. Container shipping costs has reached prices ten times higher than in the pre-Covid period, according to a recent analysis published on Wine Business International. Also the Freightwaves portal highlighted an increase by 122% in transport rates between Asia and the USA. The future of the international wine market - it is a fundamental sector for the Italian economy - remains uncertain: instability of raw material prices, logistics problems, and delayed container ships represent the most relevant factors affecting the transport sector. This suggests that the transport costs may increase further in the future.