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New Covid-19 wave, cyberattacks, floods in Germany and China threaten global supply chains

Source : 112 Ukraine

As the disaster unfolded in Germany, the volume of late shipments rose by 15% from the week before
11:54, 24 July 2021

Flood in Erftstadt-Blessem, Germany
Reuters

A new wave of the coronavirus pandemic, natural disasters in China and Germany and a cyberattack on key South African ports threaten global supply chains, the flow of raw materials, parts and consumer goods. This is reported by Reuters, citing companies, economists and shipping specialists.

The Delta variant of the coronavirus has devastated parts of Asia and prompted many nations to cut off land access for sailors. That's left captains unable to rotate weary crews and about 100,000 seafarers stranded at sea.

"This is a perilous moment for global supply chains," Guy Platten, secretary general of the International Chamber of Shipping said.

Given ships transport around 90% of the world's trade, the crew crisis is disrupting the supply of everything from oil and iron ore to food and electronics.

Related: Great flood attacked Europe: Where did it come from and which countries have already been damaged?

German container line Hapag Lloyd described the situation as "extremely challenging".

"Vessel capacity is very tight, empty containers are scarce and the operational situation at certain ports and terminals is not really improving," it said. "We expect this to last probably into the fourth quarter – but it is very difficult to predict."

Meanwhile, deadly floods in economic giants China and Germany have further ruptured global supply lines that had yet to recover from the first wave of the pandemic, compromising trillions of dollars of economic activity that rely on them.

The Chinese flooding is curtailing the transport of coal from mining regions such as Inner Mongolia and Shanxi, the state planner says, just as power plants need fuel to meet peak summer demand.

In Germany, road transportation of goods has slowed significantly. In the week of July 11, as the disaster unfolded, the volume of late shipments rose by 15% from the week before, according to data from supply-chain tracking platform FourKites.

Nick Klein, VP for sales and marketing in the Midwest with Taiwan freight and logistics company OEC Group, said companies were scrambling to free goods stacked up in Asia and in U.S. ports due to a confluence of crises.

Related: Floods in Germany: Government to allocate Є300 million of urgent aid

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