Raw materials, clothes, iPhones, and electronics are right
now in short supply. This means they might end up taking much longer to reach
the businesses and buyers that need them, obviously because of the coronavirus
pandemic that is actually slowing global trade.
Over sixty countries right now have Covid-19 cases. This outbreak limits trade, shipping, and travel. According to official statistics, the virus actually cost New Zealand $300 million in just lost exports to China during the past 30 days.
According to Silver Fern Farms, a meat company, the Shanghai
port was at full capacity and ships were not able to unload there. Also, import to NZ and from NZ was
affected because some Chinese factories closed. As a result, NZ outlets are now
short of iPhones, TV sets, and vacuums.
Business stock levels are now low and it is very difficult
to replenish stocks when shipping routes are now slow.
Jason Bell, executive general manager at Noel Leeming,
declared that the company does have enough stocks, but that there are lines
that run out. Delays are now expected in April.
Even Apple practically acknowledged the problems as it told
its investors that iPhone numbers are going to be limited, although a slow
return to completely normal volumes is expected.
When referring to raw materials, many manufacturers are
faced with problems. For instance, several clothing factories that try to bring
in the fabric they need are affected because of their reliance to China.
We now know that import problems are spread across various
sectors, like medical supplies, food, and packaging.
As an example, Rachel Barker from Plastics New Zealand, said
that a company manufacturing medical devices would be faced with problems if
electronics are coming in from China, even if they need to send equipment all
around the world.
The most important thing to remember here is that the
economy of New Zealand is highly connected with that of China. When products
cannot enter the country, numerous businesses in NZ struggle.
No comments:
Post a Comment