Tiếng ViệtSupply chains have been disrupted for a long time due to Covid-19, the Russia-Ukraine conflict, rising oil prices, economic recession and extreme weather.
The hard supply chain crisis that has lasted from 2020 to now originates from the complicated developments of the Covid-19 pandemic. Although countries, businesses and managers have popularized solutions and improvement measures, they have not been able to completely solve this problem in recent times. According to reports and statistics of the past years, these are the 5 reasons leading to supply chain disruptions made by Sinovitrans.
Covid-19
The impact of Covid-19 is still present globally. Meanwhile, China is the world’s largest exporter, maintaining a “Zero Covid” strategy with new blockades and strict control of goods.
According to a report by Loadstar, as of October 21, 2022, the shipping volume at Shanghai port decreased by 15%, Shenzhen by 21% and Ningbo – Zhoushan by 29%. This led to a series of disruptions in global supply chains and port congestion in Northern Europe. However, the main focuses are bearing some signs of improvement in the near future.
In terms of indirect promotion, most are due to the influence of the origin of goods. Data from Fleetpoint shows that 67% of top European supply chain leaders find traceability extremely difficult and the pandemic has exacerbated this problem. .
Conflict in many countries of the world
The conflict in Ukraine has had a fundamental impact on the global logistics industry, making the shipping industry already under pressure due to the epidemic difficult to control. This conflict also disrupts supply chains on a large scale. In particular, important domestic trade and logistics routes are blocked, ships passing through the Black Sea cannot travel and many businesses in Russia are subject to sanctions. All are wreaking havoc on the global distribution chain.
In particular, about 20 million tons of grain and sunflower oil are stuck in Ukrainian ports. Cereals are not only the main food source, but also the basic ingredient in the food list of Europeans. Therefore, a market is growing into a mess in the eyes of production chain managers and the general public.
Not only stopping at the war between Russia – Ukraine, the conflicts of China – Taiwan, North Korea’s missile tests in the Japanese peninsula also affect the transportation of goods across the country. the East Sea and affect regional security.
Oil prices rise
Oil is another example that is causing disruption. EU data shows that Russia supplies 25.9% of gas to the region in 2021. By the second quarter of 2022, this share is only 16.7%, marking a significant decrease.
A shortage of gasoline will lead to skyrocketing costs. Oil prices have fallen from $125 per coffin to about $90 per coffin in recent months, but are still close to double the price before the Russia-Ukraine conflict.
Economic depression
The global economic recession made the eurozone inflation rate at 10.7%, prices rose, user confidence declined and demand for goods narrowed, leading to a decrease in the amount of goods sold. accumulated inventory.
These put pressure on margins, making it harder for businesses to build accurate demand forecasts.
Unusual weather
Severe weather is often a “blow” that causes the production chain to stall. Only 11% of manufacturers are almost prepared for weather-related disruptions, according to a recent Harvard Business Review study. These restaurants are poised for a more dominant position in the market, in order to capitalize on demand while competitors lag behind.
The addition of air freight to the multimodal logistics solutions allows you to get the job done quickly. So, when disruption occurs, users can still leverage this shipping method to create highly profitable opportunities in key markets.