Answers by Curv Logistics Group
Hello,
In 2020 the rapid spread of the virus prompted shutdowns of industries around the world. As lockdowns have lifted, demand has rocketed. Logistics and supply chains that were disrupted during the global health crisis are still facing huge challenges and are struggling to bounce back.
We must give credit where credit is due; the COVID epidemic alone can accept responsibility for the bottle-necked, highly-priced shipping woes we are all encountering. And as COVID and the shipping crisis kept giving, inflation reared its ugly head. We have price hikes now, similar to when I was just a kid in the seventies. Now, we have a war. Beyond the horror and atrocities that are inevitable in these situations, it also is a significant cause for concern for our industry.
As you ponder export controls and trade sanctions, don’t let the sticker shock of all these new developments catch you off guard. Here are some suggestions:
What to do first?
- You will need to sit down and take a long hard look at any current or future business coming out of Russia, Ukraine, and Belarus. Not just your company, but your customers. Be aware of the struggles they will be facing.
- If you are working with any of these countries, consider activating secondary sources for your needs immediately.
- Pause before entering into any new business relationships with Russia or Belarus.
- If you are using Russian Banks, you will need to act quickly consider bringing in experts in this field to ensure your credit, funding, and future are intact. Also, familiarize yourself with all the U.S. sanctions and how they could impact your business.
Now the big questions.
Will this war expand across Europe? How is China going to react to this new world problem? Will Russia use cyber-attacks on critical infrastructure, the ports? The power grid? This is all happening so quickly; it is essential to evaluate every aspect of your business and protect it however possible. Most importantly, may this war end soon, with no more bloodshed.
By Tawny Gaines
*Excerpts from the Industry Week article “Shipping Costs Rise, Transportation Tightens, as the war escalates in Ukraine.” By Lauren Patelli
