The impact of the coronavirus pandemic has been seen and felt throughout several industries, forcing these industries to cut back on hours and implement safety measures to protect their employees. One of the hardest hit industries is refrigerated shipping, which has had to collaborate with companies that experienced unexpected closures due to the pandemic. If your business has a need for refrigerated shipping, here’s a closer look at the effects of the pandemic on this particular industry, and how you can best move forward. 

How COVID-19 Has Impacted Refrigerated Shipping & Freight

Interruptions in Supply

Before the pandemic, refrigerated transport was a booming industry. However, international border closures first began to interfere with its success and disrupt the food supply chain, and the closing of nonessential businesses caused a change in the demand. 

Restaurants weren’t ordering their usual amount of product, and suppliers were left to deal with the excess. Since there was nowhere to send excess products, suppliers had to cut down on their shipping services, and perishable items began to go to waste. 

Vulnerable Oil Markets and Pricing

The demand for fuel decreased at the start of the pandemic, leading to the Organization of Petroleum Exporting Countries (OPEC) having to significantly cut global oil production. Many industries and oil-exporting countries found themselves at the mercy of a tenuous supply and demand for oil and gas, doing their best to respond to the whims of a COVID-impacted global market. 

Higher Contract Rates

With customers not requiring their usual services and with tenuous fuel costs, transport professionals have had to increase contract rates to cover their losses. Consider the fact that refrigerated shipping is only a seasonal service. It prevents these companies from maintaining year-round contracts, which means asking for a higher rate is an effective way to make ends meet. 

If you’re in the market for refrigerated shipping, reach out to Unicold Corporation. Located in Honolulu, HI, this skilled team manages the largest refrigerated warehouse in the state. They have been in business since 1962 and offer shipment services to the neighboring islands, as well as Los Angeles and Oakland, CA and Seattle, WA. They commit to the highest safety standards and offer affordable rates. Call (808) 836-2931 to speak with a friendly representative or visit their website for additional information on their services.