A UNCTAD report published on March 16th shows increased financial volatility, sustainable development divestment, complex global supply chain reconfigurations, and mounting trade costs. There’s rising concern over its impact on Food and Fuel.
Ukraine and Russia represent 53% of the global trade of sunflower oil and seeds and 27% of the global trade of wheat. Soaring food and fuel prices are most likely to impact the most vulnerable in developing countries.
Meanwhile, restricted airspace, contractor uncertainty, and security concerns are complicating all trade routes going through Russia and Ukraine. Rising fuel costs, rerouting efforts, and zero capacity in maritime logistics will lead to higher freight rates. Read the full article here
The rising energy prices and shortage in supply have exacerbated supply chain challenges. An increase in nickel prices crossed a 250% mark in two days reaching $100,000 a ton. This sudden surge will cause challenges for the manufacturing of stainless steel used to make items, including fridges, surgical instruments, exhaust pipes, and vehicle chassis.
Japan reported a wider-than-expected trade deficit in February with the recent surge in energy import costs caused by massive supply constraints. The Ministry of Finance data showed that Japanese imports increased 34.0% in February, which was more than the median market forecast for a 28.0% gain. Exports rose lesser than the expected levels despite an increase in Chinese export shipments. This trend poses a significant threat for the economy facing uncertainty from supply challenges and the Russia-Ukraine conflict resulting in a $5.65 billion trade deficit for the nation. Learn more by clicking here.
Russia is the third-largest oil producer in the world and the largest oil and products exporter globally, and Europe depends on the nation for supplies. International Energy Agency stated that three million barrels per day of Russian oil output is at risk beginning in April as sanctions hit and buyers shun the nation’s exports. A global oil supply shock is on the cards with the prospect of large-scale disruptions to Russian oil production. To learn more click here.
The White House is focusing on fundamental freight operations as it seeks to untangle U.S. supply chains. The Biden administration’s pilot program to have companies share data on goods movement is an effort aimed at improving shipment flows by bringing more visibility into distribution channels. 18 companies including ocean carriers, shippers, and freight forwarders will take part in it. This may lead to a complete platform for Freight Logistics Optimization Works later this year.
Sea freight shipments change hands several times in transit, but companies involved don’t always trade information that can make transport most efficient. With much of the freight sector already focused on visibility, any effort that can help manage inventories is likely to win shipper support. To learn more click here.
Ocean carriers are scrambling to adjust their networks as Shenzhen begins a week-long lockdown. Meanwhile, port calls at the port of Yantian would have to be pulled this week and next week. The disruption is also likely to stop the reduction in spot and short-term freight rates on the Asia-Europe trade lane, with rates across all Chinese export lanes reflecting pent-up demand for shipments. Read more.
SAP Innovation Awards recognizes consumers, partners, and customers that develop innovative tech solutions that provide long-term benefits and impact our planet. From the multiple entries received SAP has selected 60 finalists and on April 14 the winners will be declared. Learn more about SAP Innovation Awards and the finalists here
Amid challenging times, sustainability remains a critical priority worldwide—and music remains an outlet for community and shared experiences. This year, Coldplay is uniting with SAP for a carbon-offsetting Music Of The Spheres World Tour. Learn more about this creative tour here
project44 has introduced Yard Solutions to automate and improve efficiency in yard operations. The new software suite offers comprehensive dock management tools that allow for efficient inventory control as well as remote access across the entire facility so businesses can keep track of everything from one location with ease. Read the press release.