THE IMPACT OF THE COVID-19 PANDEMIC ON CONTAINER FREIGHT RATES: GLOBAL TRENDS AND THE CHINA-OMAN TRADE ROUTE

Abstract

The COVID-19 pandemic caused significant ripple disruptions to global trade, leading to unpredictable fluctuations in container freight rates. Factors such as lockdowns, port closures, volatile rate forecasting, labour shortages, and shifts in demand for medical and non-medical goods exacerbated supply chain crises. This study aims to examine the impact of COVID-19 on container freight rates by investigating the driving factors behind the substantial volatility and uncertainty in container freight rates during the three stages of the pandemic: pre-pandemic, peak, and post-pandemic. The study identifies the main drivers and sub-drivers of freight rate inflation as the COVID-19 pandemic, the demand for medical and non-medical goods, and the accuracy of freight rate forecasting after a thorough review of the existing literature. Furthermore, the study examines the impact of COVID-19 on the China-Oman sea corridor from 2019 to 2023 from the perspective of container shipping lines. The research also highlights the role of container shipping lines and freight forwarding companies in shaping future freight rate volatilities and enhancing operational and logistics efficiency. This paper provides practical insights for container shipping lines, policymakers, and businesses aspiring to understand and mitigate the risks associated with supply chain disruptions in the event of a future pandemic or similar scenario. Finally, it offers recommendations for future research that emphasise the integration of sustainable practices, digital transformation, and strategic implementations to enhance the resilience of the container shipping sector in the post-pandemic scenario.