The “Great Jam”, as the container crisis that affects the logistics chain of product distribution at a global level, has been called. It has triggered the alert of the unions in Colombia given that there are fears that the impact will hit the economic reactivation of the country.
Although the National Federation of Merchants (Fenalco) requested the Ministry of Commerce, Industry and Tourism, the reduction of tariffs on raw materials and finished products as a mitigating measure of the crisis, within the union it is considered that the measure will not be sufficient given the size of the problem.
For Natalia Recio, associated in CMS Rodríguez-AzueroAlthough Fenalco’s proposal would halt the abrupt increase in the prices of imported products or those made with imported raw materials, It is necessary for Colombia for China to recover from its energy crisis, for the containers to return to their rightful place and for the pandemic to stop wreaking so much havoc on the economy for a return to normalcy to occur.
In statements to Infobae-Colombia, Recio highlighted elements of the crisis outlook the world is experiencing after covid-19 changed the rules of the global trade game:
There are many reasons behind the great traffic jam, including: overloaded transportation networks, labor shortages in various ports around the world, new outbreaks of COVID-19 in China, improper location of containers, China’s coal shortage to power its power plants, increased ocean freight rates, high container prices, and congestion at ports due to additional controls stemming from the pandemic
In that sense, National Association of Foreign Trade (Analdex), expressed concern about the delay in the dispatch of containers that will affect, especially, consumption during the Christmas season in Colombia.
Your president, Javier Diaz, warned that these delays not only affect finished products, but also the distribution of raw materials and inputs that are used for the production of all kinds of objectsTherefore, not only would commerce be impacted as purchases by the general public, but also the manufacture of other products that are also sold at Christmas. Among some examples, he indicated, there are toys, but also decorative lights and candles.
For Santiago Arbouin, partner in CMS Rodríguez-Azuero, Analdex’s warning must not fall on deaf ears by the economic authorities in Colombia: “Some of the consequences of the crisis have also been felt in the country, such as: the high costs of sea freight, the shortage of containers for exports and the increase in the prices of fertilizers, toys, appliances, wheat and even paraffin that, as we have seen lately, it is currently scarce worldwide due to the low production in factories due to maintenance and other factors ”, he stated in statements for this medium.
Although it is early to determine the impact of this crisis, the shortage is being strong in luxury products, technology and services, but that different macroeconomic conditions, if not treated in time, could lead to unprecedented scenarios for the planet’s economy.
For Díaz, the only way to solve this emergency is to accelerate the logistics chain with “more ships and containers”.