The crises have come on the conveyor belt for the shipping industry this year.
In January, a critical led defect on shipping containers to major delays on deliveries from China. Then came the disaster in the Suez Canal, when a giant cargo ship grounded and blocked all traffic.
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Virusutbrudd
The effects of the plug are still noticeable. European store shelves are still empty of popular goods.
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Now companies and consumers are bracing themselves for another horror scenario. The latest in a series of setbacks for the industry is a new virus outbreak of the delta variant, which is now threatening the southern Chinese province of Guangdong.
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200 cases
In the province are the two cities of Shenzuen and Guangzhou – which house two of the world’s five largest container ports.
The city of Guangzhou accounts for about a quarter of China’s exports. There are to be registered 200 cases in the giant city with over 15 million inhabitants.
The authorities have taken drastic measures to get rid of the infection. Tens of millions have been tested, and quarantines and closures have been introduced in companies that have had cases of infection.
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Enormous disturbances
It disrupts port services and delays deliveries drastically, at the same time pushing prices upwards, he writes CNBC.
– The disruptions in Shenzhen and Guangzhou are absolutely enormous. The two cities alone have a huge impact on global supply chains, Brian Glick, founder and CEO of Chain.io, told the channel.
At the Yantian port in Shenzhen, the waiting time for container ships has skyrocketed, from 12 hours to 16 days.
Maritime transport is the backbone of international trade and the global economy, accounting for around 80 percent of world trade, according to the United Nations Conference on Trade and Development (UNCTAD).
High costs
The shipping costs of sending a container from Asia to ports in Europe and North America are constantly reaching new records. Exporters will also struggle to find containers, he writes DN.
– This is completely out of control. Shipping costs are over 60 percent of the value of the products. In addition, there is a 25 percent tariff so there is almost no profit, Zhou Ming, who heads a trading company in Tianjin, told Chinese media last week.
Stunning permanent corona loss
Warns
Experts are now issuing warnings about the enormous consequences it has for world trade.
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“If you want to buy some presents for your family for Christmas, you should do it now,” warns James Baker, editor of the shipping magazine Lloyds List to the BBC.
Under normal circumstances, European retailers start buying goods by ship as early as late summer, until the Christmas season. The peak season where Christmas hoarding reaches its peak is usually in the third quarter, according to Baker.
– But this year we have been a permanent high season for a while already. The gods know what will happen in August or September. It can get wild. It is hard to say.
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– No new cases
On Tuesday, the authorities announced that no new cases have been reported.
“Zero cases do not mean zero risk,” said Chen Bin, the city’s health director, according to CNBC.
Now the authorities hope that the positive development will continue, so that shipping traffic can pick up.
– The fight against the pandemic is still at a critical stage. We can not afford to be complacent and relax, Bin adds.
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