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Holiday shopping shortages fueled by energy crises, Vietnam shutdowns

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All supply chains have been affected by major disruptions in this year’s economic environment. container shortagesYou can find more information here floods Covid infections setting off port closures

Energy crises mainland ChinaEurope and the United States are among those that have benefited from roil shipping.

Capital Economics observed that ships left waiting in Chinese ports has increased again over the past week. They called it “concerning” The 7-day average number of ships in China as of September 30th was 206. This is compared to an average of just 82 ships for 2019 before the pandemic.

Julian Evans-Pritchard is a senior China economist with the research company. He said that power rationing could affect ports’ ability ship orders.

The U.S.-China trade war has led to many Vietnamese firms moving production there. This has also had an impact on the production of many products.

Let’s take a look at recent developments that have again hindered shipping, and which goods may be affected. the leadup to the year-end holiday shopping season

China and Europe are facing energy crisis

It power crunch in ChinaLocal authorities issued power outages at numerous factories in response to widespread disturbances. Europe faces similar challenges. a massive gas shortage

Analysts and industry observers agree that what’s going on in these two regions disrupts supply chains worldwide.

The energy crisis has caused factories in Europe and China to temporarily close down or reduced their output. Jena Santoro from Everstream Analytics says that power-related disruptions have already affected more than 60 companies in China. The list will continue to grow.

According to Dawn Tiura (president of the Sourcing Industry Group), the greatest impact on consumers will come in the form higher prices, as increased energy prices will cause an increase in manufacturing costs.

These goods:

1. 1.

Tiura claims that the rise in energy prices across Europe will have “serious consequences” for regional food supply chains.

She explained that major fertilizer plants had to reduce their output due to rising prices. Farmers are now unable produce sufficient food because of this.

2. 2.

The pressure on fertilizer will also lead to a shortage of one “very interesting by-product” – carbon dioxide – which is used in a wide range of consumer products, says Per Hong, senior partner at consulting firm Kearney.

We will almost certainly face a shortage of widely used CO2 because of reduced fertilizer production. “CO2 is extensively used throughout the food value chain, from in packaged food to keep them fresher for longer periods, to dry ice and to give carbonated beverages like soda and beer their bubbles during transport,” he stated.

Hong stated that this demonstrates the fragility of global food supply chains.

3. Apple iPhones, electronics, toys

Hong reported that many major Apple suppliers had stopped operating their China factories. In fact, the entire electronics industry — already reeling from the big chip shortage — is likely to suffer, he said.

Hong stated that while things will likely improve over the long-term, power restraints and reductions in China’s production are expected to cause export price increases, which could worsen inflation during the holiday season. toysAlso, textiles will likely be affected.

4. Christmas decorations

Warnings are being issued by companies that there may be huge demand for Christmas decorations

According to Chris Butler, the CEO of National Tree Company, this is due to disruptions in China’s supply chain.

Other sectors that would feel the biggest and most immediate impact from the crises include metals, chemicals and cement – all of which are energy intensive, said Pawan Joshi, executive vice president of supply chain software firm E2open.

Southeast Asia Shutdowns

Covid has caused factory closures and shortages throughout Southeast Asia, with the production of Vietnam, Thailand, and Malaysia falling “sharply”, says Gareth Leather from Capital Economics, Senior Asia economist.

The Vietnam situation appears particularly serious, since many Chinese companies are moving their production there amid the U.S. China Trade War.

It’s winter!

According to Everstream Analytics’ Santoro, shortages of goods will increase and prices will rise as winter draws nearer.

Santoro explained that gas shortages could intensify as natural demand rises in the winter season. The season begins with low inventories and increased demand, which allows prices to rise.

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