With the implementation of THAAD (missile defense system) in Korea, the number of Chinese visitors plummeted in April. Some reports have indicated that visitors from China decreased 40% (from previous stats) from March – to mid-April 2017. Chinese visitors accounted for half of all tourists to Korea in 2016, which means a loss of revenue for many tourism industry. Furthermore, news of boycotts of Korean goods in China has made the situation worse, as Korean companies are heavily dependent on exports.
With less visitors and less demand for Korean products, it means less flights to China. Which leads to less space and more wait times.
What does this mean to LBK Cargo?
Unfortunately, a few of our clients have been affected by this situation. Goods are sitting in our warehouse without movement. Perishables that have a shelf life of a few months will need to be discarded, at a loss to our clients bottom line. Special events that were planned earlier this year have been put on hold, delaying new product launches.
Airlines have changed the frequency of flights to China and have opted for smaller planes, so cargo shipments were delayed, which are crucial for our clients livelihood.
But there is hope.
We are discussing new opportunities- new growth markets, where we can help our clients enter new markets with existing clients and new allies – we will seek out any opportunity to help our clients succeed.
Romans 12:2 (NIV)
2 Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—his good, pleasing and perfect will.
Freight forwarding, freight forwarder, logistics, 3pl, Seoul, Korea, korean freight forwarder
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