The 2008 global financial crash was bad for everyone. Businesses all over the world suffered big losses from the crash. The crash hit young entrepreneurs and others who were just starting out, particularly hard. The effects of the crash are still with us today. More than ten years on, many of you reading this will be struggling under debts or unfulfilling jobs to pay off losses incurred during the crash. Where some businesses got out from suffering from the effects of the 2008 financial crash, the pandemic pulled them back down the drain. The global coronavirus pandemic hasn’t been anything less than a financial crash itself. Not only has it destroyed the global economy it has run many companies out of business.
Did The Coronavirus Effect All Business Badly?
Well, to answer that question we can say the pandemic affected ALMOST all business badly. There are some businesses that have been increasing their profits since the 2008 financial crash and those companies are shipping companies. The pandemic has increased the demand of companies and businesses that ship goods around the world especially with people making most of the purchases online and e-commerce gaining more and more popularity all over the world. So, in many ways, it has all turned out good for the shipping companies,
Now one might think that where all businesses have been going through such a bad time why are shipping companies gaining so much profit. When the global trade is at a halt doesn’t that mean that the transportation of the shipping containers would be halted? Well that is very true however the loss is mostly incurred by the seller who have their products in those containers. The shipping companies on the other hand earn money through bumper payments in such cases. However, this does not mean that things are great for all shipping companies. It does affect a little the size of the company and the country where the shipping company is based.
The Financial Reality for Shipping Companies Today
It may seem to some people that all shipping companies are doing well according to this version but there are some who are not doing so well. Some shippers have received direct blows from the global financial meltdown when their financial institution collapsed. The harsh fact is that if your bank goes under you are probably out of work no matter what profession you are in. There are also other factors that influence the everyday running costs of the shipping company.
With the development of Covid-19 vaccination, the world is slowly moving towards a better and safer future. The shipping companies know that businesses are looking to increase their sales to make up for the lost time and lost business. This is why the shipping rates have increases and the shipping companies are making a good amount of profit based on the increased prices. The problem is that there is nothing the companies who deal in trade can do. They need these shipping companies to carry out profitable trades and the shipping companies need to make up for the lost income that they never got due to the pandemic.