The floods in China and Europe are yet “another body blow” for global supply chains, the CEO of a shipping firm told CNBC on Monday. “Rarely does a week go past without something new,” says Tim Huxley, CEO of Mandarin Shipping.
Shipping has already seen massive disruptions this year. As parts of the world rebounded from the pandemic, increased spending led to a shortfall of containers, creating delays and driving up prices. Then in April, one of the world’s largest container ships became wedged in the Suez Canal, halting traffic for nearly a week. The waterway is one of the busiest in the world, with about 12% of trade passing through it.
In June, an uptick of Covid cases in southern China caused more delays at ports in the region, again jacking up shipping prices. Heavy rainfall and flooding have devastated parts of western Europe. Some of the most severe flooding happened in Germany and Belgium. Parts of Switzerland, Luxembourg and the Netherlands have been affected as well.
“This is really going to disrupt the supply chain because the railway links have all been broken,” Huxley told CNBC’s “Squawk Box Asia.” He said that includes railways coming from the Czech Republic and Slovakia into the German ports of Rotterdam and Hamburg, which have been “seriously disrupted.” “And so that’s going to delay cargo movements in and out,” he said. “It’s gonna really disrupt the industry.”
Global shipping industry disrupted again, this time by floods in Europe and China, CNBC, Jul 27