Affectations in the Supply Chain Due to the Conflict in Ukraine

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pujamonidas99
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Joined: Tue Jan 03, 2023 8:59 am

Affectations in the Supply Chain Due to the Conflict in Ukraine

Post by pujamonidas99 »

A little over a month after the armed conflict between russia and ukraine began, we have already seen various effects on the supply chain in various sectors, however, one of the ones that concerns us to a greater extent is the production and logistics part. The price of fuels impacts the entire supply chain the energy sector has seen its prices increase during this time, being the benchmark oil, west texas intermediate, the one that has suffered the greatest increase, reaching its price in some days to almost $120 dollars a barrel; mexican oil, during the week of march 7 to 11, returned to prices that had not been seen in 13 years.

The consequences of this can be observed in that, today, production inputs have had a rise of about 10% in their prices, likewise, the fuel market has been affected, reaching historical values ​​in some countries. In its sale price, and in our country it has been contained through subsidies and a reduction in the percentage of Industry Email List the special tax on products and services (ieps). The war has provided us with changes in the logistics chain that began to compensate for the sars-cov2 pandemic, within which, the effects on the international market that are of most concern are the following: lack of routes and motivated team the increase in fuels has affected transportation.

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Coupled with the closure of air and maritime space, the lack of equipment, and the few skilled workers that are causing major inconveniences. For this reason, prices are rising and there is a lack of response capacity when sending and receiving shipments. Analysts agree that this is not likely to change in the short term. Ground transportation on the land side, we see that fuel is depleting operators since some already operate with a deficit, which is generating increases that are transferred to the final consumer to be able to deal with the damage generated. Likewise, the agreed costs for the current months change constantly with the uncertainty that this generates. In europe, carrier protests are on the rise in germany, belgium, france and spain, just to name a few.
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