Global supply chains are being disrupted by four new post-pandemic factors, according to a new Supply Chain Outlook report from Elion. The four factors are the conflict in Eastern Europe, Asia’s role in the global supply chain, labor negotiations at western U.S. ports and rising transport costs.
War in Eastern Europe is driving commodities volatility, reports Elion. Russia is the No. 1 exporter of natural gas, No. 2 exporter of oil and No. 3 exporter of coal, as well as being a major resource for uranium, nickel, aluminum, palladium, titanium and copper. Commodities markets were already strained prior to Russia’s invasion of Ukraine, and sanctions have caused further tightening in global supplies.
Asia continues to have a tight grip on the global supply chain. Elion points out that Asia represents 41 percent of global exports and 37 percent of global imports. Rising COVID-19 cases, especially in China, have seen new lockdowns and manufacturing shut