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Global Supply Chain Disruption | FreightAmigo

Author Name: Emma Hau – Marketing Analyst at FreightAmigo | 4/3/2022

The outbreak of Russia-Ukraine conflict once again results in severe disruption on the global supply chain in full scale.

Air freight is affected by the current oil price.  Oil prices started to soar to highest level since 2008, resulting in a higher operation cost in air freight.  Airlines such as China Airline and Eva Air had announced a 10% increase in fuel surcharge.  There will be another adjustment if the conflict persists.

Rail freight is also affected due to the conflict.  Several China-Europe rail freights are suspended, disrupting supply chain operation between the two continents.

Problems in air and rail freight pushes enterprise in adopting sea freight nowadays.  The Baltic Exchange Dry Index (BDI) surges 14% in a month.  The increase in sea freight demand will drive up the cost in this operation mode, increasing the trading and logistics cost for enterprises.

While uncertainty continues between Russia and Ukraine, uncertainties will also engulf global supply chain.

Read more:

Logistics News – 5 Tons of Medical Supplies Rolling into Lo Wu Marshalling Yard from Shenzhen

Cross-border Disruption – Last Minute Logistics Solution with FreightAmigo

 

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