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Think!Economic recession, geopolitics and costs have become the most worried issue of supply chain

  • Author:Elena
  • Release Date:2023-05-15
Think!Economic recession, geopolitics and costs have become the most worried issue of supply chain

Container Xchange warned that the tensions of international war and the tensions around China and Taiwan brought risks of global trade split due to geopolitics.



"These high -risk geopolitical tensions may lead to the differentiation of trading groups and may lead to a world with a reduced trade efficiency, because you can no longer trade with everyone, and trade is limited between neighborhoods." Container XChange's United UnionCHRISTIAN Roeloff, the founder and CEO.



"Rising interest rates, increasing unstable banking industry, tightening credit channels, decline in commercial real estate value, and a vicious circle of final decline have also had a significant impact on the supply chain." Roeloff said.



Think!Economic recession, geopolitics and costs have become the most worried issue of supply chain



In addition, due to the promotion of energy prices and labor costs, operating costs have increased, and it is expected to not decrease. In addition, the price of warehouse spaces caused by end tariffs and tensions of supply has also brought additional pressure.



Aaron Callahan, the owner of a container trading company in the United States, said: "Overall, the container market is currently very unstable and changes every week.



Think!Economic recession, geopolitics and costs have become the most worried issue of supply chain



"We are facing high stagnation and retention fees, operating costs, and other expenses related to the storage and transfer of containers. The demand will not be recovered quickly. On the other hand, the capacity and supply of the container are sufficient. Most of us are most people.They are all, trying to establish flexibility and consistency in our business, which is very important for enterprises. "



In short, the rise in the economic recession of the United States, the rise in geopolitical tensions and the rise in operating costs have become the most worried issue for supply chain professionals.