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2021 / 07 / 02
HWAFUNE Newsletter no.7

The Problems After the Epidemic.

With the increase in vaccine delivery rates in advanced countries, some important cities have begun to unblock. Whether it is increased or anticipated increase in demand, it is the long awaited result of various industries.

However, the industries cannot quickly respond to market changes.

Global transportation issues

Trade volume began to rebound in the second half of 2020, which caught container manufacturers by surprise. New container orders could not be digested, and the demand for containers was clearly in short supply. In December 2020, the CAx (Container Availability Index)
once fell to a record low of 0.13


Shortage of raw materials

The epidemic has forced people to stay at home, so the demand for services is transformed into demand for goods. But take the United States as an example. Even though the
vaccine delivery rate is now increasing and cities are unblocking, the demand for goods is still high. With the slow replenishment of labor, upstream manufacturers cannot increase production capacity even if they receive a large number of orders. The short term of oil also impacts many livelihood products, such as textiles.

Information source:
REUTERS "U.S. manufacturing gains steam; raw material, labor shortages mounting"
IEAT Trade Magzine <力抗巨輪供應鏈壓力 區塊鏈+減碳 韌性物流打造貿易力>