Lack of holiday shopping fueled by energy crisis, Vietnam closed

This year, supply chains around the world have been hit by massive turmoil. Shortage of containers NS flood When Covid infection causing port closure..

Energy crisis Mainland China And Europe have the latest shipments.

Capital Economics has called it a “concern”, noting that the number of vessels waiting outside China’s ports has skyrocketed again in recent weeks. According to a research firm, the average number of vessels in the seven days as of September 30 was 206, compared to the average of 82 vessels in 2019 before the pandemic.

Julian Evans Pritchard, senior Chinese economist at research firm, said electricity distribution along the supply chain could hinder the port’s ability to ship orders.

The closure of a factory in Vietnam, where many companies relocated their manufacturing industries during the US-China trade dispute, also affected the production of many commodities.

Here, let’s take a look at what types of products are being affected by recent developments again hindering shipments. Lead-up to the year-end and New Year shopping season..

Energy crisis in China and Europe

NS Chinese power crunch Local governments ordered power outages at many factories, causing widespread confusion.Europe is also working Large amount of gas shortage..

According to industry watchers and analysts, what’s happening in both regions is the worst situation that is disrupting supply chains around the world.

Factories in China and Europe have temporarily shut down or at least reduced production due to the energy crisis. Dawn Tiura, president of the Sourcing Industry Group, said higher energy prices will lead to higher manufacturing costs, and consumers will see the biggest impact in the form of higher prices.

Hit products:

1. Food

Rising energy prices in Europe will have a “serious chain impact” on the region’s food supply chain, Tiura said.

“Rising costs have forced major fertilizer plants to cut production, which has prevented farmers from producing enough food,” she explained.

2. Carbonated drinks, dry ice, packaged foods

Pressure on fertilizers also leads to a shortage of carbon dioxide, one “very interesting by-product” used in a wide range of consumer products, said Per Hong, a senior partner at consulting firm Kearney.

“With reduced fertilizer production, we are almost certain to face a global shortage of widely used CO2. CO2 is widely used in the food value chain from inside packaged foods to keep it fresh longer and dry ice. Keep frozen foods cold in. During delivery, lather carbon dioxide (such as soda and beer). “

This points to a vulnerability in the global food supply chain, Hong said.

3. Apple iPhone, electronics, toys

According to Hong, several major Apple suppliers have shut down their factories in China. In fact, he said, the entire electronics industry, which has already recovered from a major chip shortage, is likely to suffer.

“It’s likely to normalize in the long run, but in the near future, these electricity limits and cuts in China could lead to higher export prices and worsen inflation during the holiday season,” said Hong. There is. “that’s why toy Textiles can also be affected.

4. Christmas decorations

Companies Huge demand for Christmas decorations..

“People who want to buy holiday trees and other ornaments this holiday season should buy them before Thanksgiving, or they risk paying through their noses or having nothing.” Chris Butler, CEO of the National Tree Company, said. Supply chain turmoil in China.

Pawan Joshi, executive vice president of supply chain software company E2open, said that other sectors that feel the greatest and most direct impact of the crisis include metals, chemicals and cement. These are all energy intensive.

Shutdown in Vietnam, Southeast Asia

Gareth Leather, senior Asian economist at Capital Economics, said Covid’s closure of factories across Southeast Asia and labor shortages “caused significant short-term turmoil, resulting in a significant reduction in production in Vietnam, Thailand and Malaysia. “I am.”

The situation in Vietnam seems to be particularly important, as many companies have moved production from China during the US-China trade war.

Winter is coming

Jena Santoro of Everstream Analytics said product shortages and price increases are likely to worsen as winter approaches.

“The natural increase in demand for gas in winter is likely to exacerbate the shortage,” Santoro said. “In the season of low inventories and high demand, soaring prices can continue to rise.”

Lack of holiday shopping fueled by energy crisis, Vietnam closed

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