The Russia-Ukraine conflict is now on for more than a month. The non-availability of commodities from Russia is changing the sourcing landscape across the world. Brazil wants to fulfill its fertilizer needs from Canada, while Argentina may be looking at more wheat and sunflower oil exports. On the other hand, Australia may soon become a preferred nickel exporting alternative to Russia, and Canada may emerge as the alternative to many commodities such as crude oil, uranium, nickel, and potash, among many other agricultural products. Could this be a restructuring of global sourcing strategies? Learn More.
It’s not an unfamiliar concept that wars cause inflation. The Ukraine-Russia conflict has a continued effect on food and energy prices globally that may have long-lasting impacts on food and energy supplies. Oil and gas prices typically fluctuate, and the war seems to have caused a widespread rise in its current prices. Oil is critical to running the global economy. The OPEC countries control approximately a third of global oil production, which gives them the power to reduce or increase production based on market conditions. Oil demand is likely to grow by 4-4.5 times this year, given the rising demand for flying, traveling, and things returning to normal. Meanwhile, 20 million tons of wheat from Ukraine that should have normally reached the market may create a significant gap for consumers. Learn more about the evolving dynamics of the commodities market and its implications on the global economy here.
China’s new wave of Covid infections and the subsequent lockdowns are further causing havoc and disrupting an already strained global economy. Purchasing managers’ indexes for March showed lockdowns in Shenzen, the technology and trade center. The automotive city Changchun also cut factory activity in the month. Shanghai, the world’s largest container port, is trying to contain new infections, impacting port operations and efficiency. AP Moller-Maersk has shut down some of its facilities in the city. Bloomberg economists predict that the situation could become grave in April, thus impacting the growth for the second quarter. The outbreaks affect areas covering roughly 30% of China’s GDP. According to Goldman Sachs Group Inc., Natixis SA estimates a 1.8 percentage point cut to the first-quarter growth rate because of the Covid controls. Read More.
Many cargo ships are avoiding the Israeli port of Haifa, which is overwhelmed with a massive queue of ships and understaffed to handle the backlog. As per the current news, 80 ships are waiting to dock at the port, creating more disruption for the supply chains. Ships are bypassing the port to avoid delay. Most of the waiting ships carry general cargo — steel, building materials, grains, paper, and other commodities. Read More.
Learn more about the critical importance of Supply Chain Visibility in times of severe disruption to global supply chains.
A new concern for supply chains seems to be impending as there’s a strong prospect of dockworkers calling for a strike on the US West Coast. The conflict involves negotiations over a new contract for approximately 22,000 union workers of 29 West Coast ports. The majority of these workers are employed at the Long Beach and Los Angeles ports, which are critical for the entry of goods from Asia to the US and have the potential to impact global supply chains profoundly. The contract for the International Longshore and Warehouse Union ends in June, and for truckers, logistics companies, and retailers, July could translate to significant uncertainty. Learn more here.
The SAP PartnerEdge program has won the 5-Star partner program award rating for its 16th consecutive year from The Channel Company, a leading IT channel industry publisher.
SAP was listed as a winner of the 5-Star rating again in the 2022 CRN Partner Program Guide, earning the top rating from The Channel Company.
project44, the leading supply chain visibility platform, has launched Port Intel, a first-of-a-kind port intelligence solution with real-time data on congestion and container flow at all global ports. The platform provides shippers, LSPs (Logistics Service Providers), Freight Forwarders, and other stakeholders with what they need to manage and mitigate the impacts of today's ocean turmoil and chaotic supply chains.