[ad_1]
Bloomberg
End of Suez Snarl marks start of new stress on global trade
(Bloomberg) – Now removed from the main chain of the Suez Canal, Ever Given leaves in its wake several weeks or months of disruption in a global economy where the pandemic has exposed both the strong backbone of global trade and a Achilles’ heel. not a bottle cap moment, ”said Peter Aylott, policy director at the UK Chamber of Shipping. “We could still be a few days away from the total free admission of the channel.” The reopening triggers a new wave of stress on supply chains – the interwoven network of ships, ports, trucks, trains and warehouses that move products from one factory to one side of the planet to one. retail shelf or production line on the other. A surge in e-commerce means even greater consumer demand for speed, additional pressure on transportation and rising freight rates to record levels. Even a temporary blockage in a major artery like the Suez is problematic as nearly 6,000 container ships around the world operate on schedule. , with a finite number of steel boxes to go around. They cannot be repositioned where demand arises or moved quickly from areas where economic activity is slow. The capacity can be modified by adjusting the speed of the ships but also with a more blunt tool: cancellation of crossings which are no longer possible or which are not economically viable. The Suez incident could trigger many. This leaves freight owners – and all logistics industries handling imports and exports – at the mercy of container ships. Jensen from SeaIntelligence Consulting. “We will continue to see congestion problems in Europe develop as cargo arrives, blank crossings resulting from the long delay of many vessels, as well as a deterioration of the equipment situation.” In the short term, ports from Europe to Asia are preparing to be inundated with cargo stranded near Egypt for nearly a week. late last week 59 container ships trapped in Suez congestion were heading to estimate when they would arrive. In Spain, the ports of Algeciras, Barcelona and Valencia were reviewing revisions to arrival times and preparing contingency plans for more working hours to deal with the unpredictable flow of ships. well beyond container transport: dozens of oil, gasoline, natural gas and more. tankers and ships were brought to a halt by the blockade, delaying normal supply and delivery routines in the energy and chemical sectors. Prior to the Ever Given grounding, around 2 million barrels of crude and petroleum products passed through the canal every 24 hours. stocks eroded by winter demand. According to Andy Weissman, CEO of EBW Analytics, American gas exporters could gain market share. Freight rates for bulk ships used to transport grain and metal could also remain high. The Baltic Dry index recently hit an 18-month high amid strong purchases of corn and soybeans in China and growing demand for metals. Meanwhile, a Chinese logistics official warned that the The impact on world trade could persist as the arrears in Europe worsen. to handle normal shipping volumes due to the pandemic, and now they will have to deal with many delayed ships all arriving at the same time or in rapid succession, said Max Wei, general manager of international affairs at Speedaf Logistics Ltd. According to Vivian Lau, logistics manager based in Hong Kong, with sea freight at maximum, importers are looking for other modes, even if they are more expensive. The surge in demand for air freight is expected to continue even after the Suez traffic jam has cleared. Online shopping and the scarcity of available containers are among the reasons sellers and buyers will continue to scramble. “Over the weekend, I tried to find some 747s,” said Lau, vice president and general manager of the Pacific Air Holdings group. “I was able to find one, I couldn’t find a few.” As a sign of this demand, Etihad Airways of Abu Dhabi will temporarily convert a fifth Boeing Co. 777-300ER airliner into cargo service. Air freight was already going on without the Suez blockade, Lau sees another legacy of last week’s events: more debate over redesigning supply lines. and you don’t need to keep an inventory because they will arrive ‘just in time’, ”she said. “The blockade of the Suez Canal is just another reminder.” Rail Alternative Sigrid Nikutta, DB Cargo board member, said rail offers another option when barriers arise. “During Covid, we saw that trains can cross borders where roads were closed and we see that at the moment, when the seaway is closed, trains can continue,” she said in an interview on Monday. at Bloomberg Television. Suez unrest could spread beyond Europe and Asia. more than 4,000 hospitals manage purchases and supplies. Huge increases in demand last year led to shortages of items like gloves, gowns and masks. As crisis-level shortages have eased, US hospitals and suppliers have less inventory on hand and are more susceptible to new supply chain hiccups. “For so many products, there is no safety stock in the channel,” said David Hargraves, senior vice president of supply chain at Premier. The Suez arrears are just the latest in a series of cascading events that will delay a key entry into plastic medical equipment: resins. The company has warned member hospitals to prepare for “a higher number of short-lived or sporadic shortages,” Hargraves said. 2021 Bloomberg LP
[ad_2]
Source link