A spike in stock orders could stress supply chain crisis further, Maersk says

A jump in orders ahead of Christmas could worsen the global supply chain crisis, shipping giant Maersk’s head Vincent Clerc told The Financial Times. Following an “almost vertical” rise in shipping costs over the past month, customers may attempt to start shipping goods much earlier than usual for the holiday season. “At this stage the thing that can really make things worse for the global supply chain is this rush for the door where everybody starts to order more than they need,” Clerc said. When asked if the disruption could rise to the levels seen during the pandemic, Clerc said that “three months ago, I would have said it was not possible. Now, I would say it’s possible but unlikely.”

Relief is not on the horizon: Clerc expects that the disruptions, driven by Houthi-led attacks in the Red Sea, are forecasted to last till the end of the year, and that up to 10% extra shipping capacity will be needed.

China’s export growth could spark a backlash from countries that have so far not taken part in its trade war with the US and Europe, Bloomberg reports. China’s trading allies are concerned that excess capacity in sectors related to housing might result in the surplus materials being unloaded onto global markets, according to Ong Kian Ming, Malaysia’s former deputy minister for international trade.

Countries are already taking protective measures: Last year saw the start of a backlash, marked by unprecedented levels of anti-subsidy and anti-dumping actions taken against Chinese products. The majority of these measures were initiated by developed countries within the G7. However, anti-dumping actions were also instigated by a diverse array of nations, including India and South Korea, and focusing on various manufactured goods such as steel products, wheel loaders, and wind towers, as reported by the World Trade Organization (WTO).