12% of Goods Shipped Worldwide Are Stuck- Shortages Soar

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Aerial view cargo ship terminal, Unloading crane of cargo ship terminal, Aerial view industrial port with containers and container ship.

According to the Maritime Executive, globally, the number of shipping containers in congestion is increasing again due to lockdowns in China. The indicator shows that currently, about 12 percent of all goods shipped worldwide are stuck.

Global trade is taking a battering due to the Ukraine-Russia war, with some of the world’s biggest economies recording significant hits due to disruptions of supply chains.

The German research organization Kiel Institute for the World Economy reports that by its estimate, the value of global trade declined by 2.8 percent between February and March.

The latest data update of the Kiel Trade Indicator of 500 ports in 75 countries shows the conflict is weighing heavily on almost all economies and on global trade overall.

The decline has been pronounced in Russia, where imports have declined by 9.7 percent and exports dropped by five percent. The country’s increasing isolation is reflected in the abrupt decline in the number of container ships arriving and departing from its ports, The Maritime Executive reports.

Global Supply Lines Brace for ‘Menacing’ Economic Storm to Widen

Chinese exports were already tailing off from an October peak – a trend that might continue for the next few months if Beijing maintains the hard line on fighting the virus, Vincent Stamer, a trade economist with Germany”s Kiel Institute for the World Economy, said. That”ll add shipping delays, sourcing problems and costs for businesses from the U.S. to Europe.

According to supply constraint indexes developed by Bloomberg Economics, pressures in the U.S. and Europe intensified in February after several months of improvement.

Anecdotal evidence through March suggests the strains won”t abate. Stamer cited the example of electric wire assemblies made in Ukraine for German automakers. “These cable trees are actually custom-made for individual cars” and aren’t easily or cheaply sourced from other countries, he said. Another rare inport that’s suddenly even more scarce is neon gas used in semiconductor production.

Ukraine produces 50% of the world”s purified neon, Stamer said. Russia”s output of raw materials extends even deeper into the global economy, Bloomberg reports.

In The US, Walgreens Rations Baby Formula

A national shortage of baby formula brought on by supply-chain issues has forced US retailers such as Walgreens start rationing Across the nation, 29% of baby formula products are out of stock, with several states seeing shortages of >40%, The Daily Mail reported. This comes after Joe Biden warned of severe shortages.

The Poor of the World Suffer the Most

Joe Biden can’t control anything in the country:

SANCTIONS HURT THE US AND EUROPE WAY TOO MUCH


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