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Global shipping has been hit by the coronavirus. Now goods are getting stranded

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Begin today with an Oldie but a goodie the stock market it is sometimes said is not the economy and the economy is not the stock market. That is true but it's also true that those two things are related distant cousins maybe a time or two removed sorghum about to. It should be taken with that in mind. There was a general sigh of relief to be heard today and stocks pretty much worldwide Asia to Europe to Wall Street based find enlarge on a couple of things relief that the corona virus might and. I'm stressing might here not be as bad as had been predicted. Oil was up as well. That's a good sign for the global economy. If not necessarily for drivers there was a bounce in American manufacturing last month. I think we told you about that yesterday. Also a good sign so insert once again Dan. The caveat here a sigh of relief might be warranted. But that said much as when you get sick with a regular bug the drag from Corona virus. Assuming it's not going to be as bad as we had feared is still going to be with us for a while exhibit all those flights to and from China that have been cancelled in some cases for months. Yes that means people can't get there or out of there also cargo because the bellies of those planes don't fly empty marketplace's Jack Stewart gets is going. There are many people flying in and out of China right now don't erodes embry riddle. Aeronautical University says that means less capacity for crates and Palettes too to what most people probably don't think about it. This is a sizable portion of the air. Freight actually comes in the belly of an aircraft. So it's in that section it most passengers think is where all their luggage is. Depending on the plane a flight can carry the equivalent of two semi trucks worth of cargo according to figures from Iota the International Ah Transport Association. Globally cargo generates nine percent of airline revenues or more than twice that first class tickets. Jesse Cohen an air cargo. Go in freight transportation consultant says for flights from China. That can sometimes be even higher a really good passenger flight. You might see fifteen to twenty percent of the revenue being generated by cargo. Some of that money comes from businesses that sell perishable goods like food and flowers which need need rapid shipping but Cohen says high-value products like laptops and cell phones are also worth paying the extra descend by. So they're not tied up at sea and can get to market doc it quickly. A lot of your electrons. Higher intellect tonics manufactured in China assembled in China and shipped over by air cargo about one third of cargo who is transported on passenger planes. The rest goes on freight only flights and they are still operating to China new Fedex. UPS wanted to do an interview but both said that following federal guidance and giving advice to crew on how to stay safe there is one type of Shipman that hasn't seen a downturn says Eric coolish the Kogo editor editor at freight waves. You're seeing medical supplies going in a whether it's masks or gowns or other relief supplies when he says the economic effects of flight. Suspensions are not as bad as they might have been. It is after the busy holiday shopping season in the US and the Chinese New Year holiday means factory output would have been lower right now anyway reducing demand for shipping of all types. I'm Jack Stewart for Marketplace

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