Breakdown in logistics chain could affect country’s reactivation, warns unions

U.S.A.Breakdown in logistics chain could affect country's reactivation, warns...

View of a commercial port where containers are seen. EFE / Archive

The “Great Jam” has been referred to as the container crisis affecting the logistics chain of product delivery globally. This has triggered the alert of unions in Colombia, given fears that the impact will stifle the country’s economic reactivation.,

Although The National Federation of Merchants (Fenalco) requested the Ministry of Commerce, Industry and Tourism for reduction in duty on raw materials and finished products as a measure to mitigate the crisis., within the association it is believed that the measure will not be sufficient given the size of the problem.

For natalia racio, join in CMS Rodriguez-AzueroAlthough Fenalco’s proposal will prevent a sudden increase in the prices of imported products or products made from imported raw materials, For China to overcome its energy crisis, it is necessary for Colombia to return to its rightful place and for the epidemic to return to normalcy to stop wreaking so much havoc on the economy,

in statements Infobae-Colombia, Recio highlights the elements of the crisis approach The world is experiencing changes in the rules of the global business game after COVID-19:

There are many reasons behind the great traffic jam, including: overloaded transportation network, labor shortage in various ports around the world, new outbreak of COVID-19 in China, improper placement of containers, China to power its power plants Freight rates, high container prices and overcrowding at ports due to additional controls triggered by the pandemic

in that sense, The National Association of Foreign Trade (Analdex) expressed concerns about delays in dispatch of containers, which would affect consumption, particularly during the Christmas season in Colombia.,

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your president, Xavier Diazoo, warned that these delays not only affect the finished products, but also the delivery of raw materials Inputs that are used to produce all kinds of goodsTherefore, not only will commerce be affected in the form of purchases by the general public, but so will the manufacture of other products that are also sold at Christmas. In some instances, he indicated, There are toys, but there are also decorative lights and candles,

For Santiago ArboinMILF partner CMS Rodriguez-Azuero, Annaldex warning by economic officials in Colombia should not fall on deaf ears: “Some of the consequences of the crisis have been felt in the country as well, such as: High cost of sea freight, shortage of containers for export and rise in prices of fertilizers, toys, equipment, wheat and even paraffin As we have seen recently, this is currently rare across the world due to low production in factories due to maintenance and other factors”, he said in a statement to Medium.

While it is too early to determine the impact of this crisis, shortages in luxury products, technology and services are getting stronger, but that a variety of macroeconomic conditions, if not treated in time, can lead to Leading up to unprecedented scenarios for the planet’s economy,

For Diaz, the only way to solve this emergency is to speed up the logistics chain.”more ships and containers,

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