Welcome to GLA! Leading the global logistics alliance.

Omicron is leading many factories stop working,the freight might rise again

Time:2022-01-24 Publisher:Kevin Num:3174

In the context of the global epidemic, the economies of many countries have been seriously hit. The most obvious is the enterprises in the supply chain.

The spread of the epidemic has interrupted the supply chain, which has led to a series of supply chain crises. In East Asia, enterprises in many countries have to shut down.

According to reports, 5 employees of the famous connector factory (Hongzhi) in Taiwan, China, were confirmed as the new crown. At present, the assembly line of the factory has been suspended.

It is understood that 280 employees of this enterprise have contact with the confirmed case, and now they have all been centrally isolated. In order to avoid the spread of the epidemic, the electronics factory has been completely shut down.

In Tianjin, China, due to the strengthening of epidemic prevention and control measures, a semiconductor factory in Tianjin had to suspend work, and the date of resumption of work has not been determined. Its headquarters in Japan also suffered serious economic losses.

In addition, the CEO of Flowserve China recently said that the same auto factory in Tianjin has been temporarily closed, and another factory in Ningbo will also be involved. Samsung headquarters also issued a statement that its factory in Xi'an, China, was also temporarily closed.

The rebound of the epidemic has led to the forced closure of some production enterprises, while enterprises in other industries have to take holidays in advance. In order to prevent the further spread of the epidemic, enterprises have to take the initiative to stop work. However, this will lead to the disruption of the enterprise's production plan.

At the same time, the epidemic also brought traffic congestion. In distant North America, there are still nearly 100 container ships waiting for entry near LA / lb port. Moreover, the average waiting time of these ships in the port is nearly 10 days.

However, traffic congestion will also lead to the rise of container costs and freight. According to the Baltic Sea freight index, in the past year, the freight of Asia North America route has increased six times year-on-year, among which the quotation of Shanghai Los Angeles has increased 12 times year-on-year.

Facing the high sea freight, many consignees choose not to use containers directly because they can't afford the high cost. In order to avoid congestion and ensure smooth shipment, the shipper needs to know the latest shipping consultation in time.

Prev：With the Spring Festival approaching, freight rates on the west coast of the United States soaredNext：FedEx will hire three ships to dock at military ports