Logistics

[New] Although the industry is likely to face some supply-chain challenges over the coming months, and professional applications will suffer production issues with employees in lockdown, for many content creation applications, the coming year is expected to be as positive as any.
[New] A key risk to regional trade is from the transmission effects to the Asia-Pacific supply chain from weaker Chinese economic growth momentum in the first half of 2020, since mainland China is by far the largest economy in the Asia-Pacific region.
With food supply chains worldwide at a risk of disruption over the coming year, the coronavirus pandemic is exacerbating an earlier, more widespread, more entrenched crisis, one that impacts more than 820 million people: global hunger.
Trade and IndusSingapore would have to be ready for disruptions to its supply of food and other essentials as lockdowns in various countries have diminished global production capacities and disrupted global supply chains.
Resiliency in supply chains and business models - the ability to adapt to and survive shocks and disruptions - is more essential than ever, not least because the climate crisis is a 'threat multiplier' and makes future economic shocks more likely.
Decreased sales and some manufacturers have complained about disruption to Chinese factories, logistics and supply chains.
The recovery of supply chains and demand, on a global basis, will be the major topic for the petrochemical industry in the second half of 2020.
Worldwide smartphone production for the first quarter reportedly fell by 10% year on year to around 280 million units, the lowest in five years, due to disruptions across the supply chain caused by the global health crisis.
Africa will not only face an economic slowdown and disrupted demand / supply chains, it will also likely be unable to avoid a grave health crisis as COVID-19 starts to spread in the region.
The next two years are forecast to be impacted by COVID-19-related factors including physical lockdowns, brick-and-mortar retail closures, essential ecommerce delivery limitations, supply chain disruption and recession/depression economic impacts.
Long-term effects to the defense supply chain in Japan will inevitably delay production and government expenditure for 2021 may focus more on stimulating the economy to keep markets out of recession.
Fitch expects the majority of shuttered manufacturing hubs and supply chains in China to be freed of restrictions by April, paving the way for higher copper demand later in the year.
Consumer fear over shortages has led to hoarding, while governments around the world have reverted to protectionist policies for medical supplies which could disrupt the global supply chain for necessary medical materials.
Even if the spread of COVID-19 is controlled by the second part of the year, global apparel supply chain could continue to face turbulent times for the next one or two years.
If indirect costs from supply chain disruption and other knock - on economic consequences are factored in, climate change could add over $100 billion of loss each year to the global economy.
As the demand in the IT industry is increasing and the supply chain around the world are getting stronger, the market of semiconductor wafer level manufacturing is expected to grow rapidly.
With factories now reopened and virtually up to full speed in China, PC vendors will face a challenge to manage supply chain and production correctly over the next three to six months.
While Indian businesses, barring a few sectors, can possibly insulate themselves from the global supply chain disruption caused by the outbreak due to relatively lower reliance on intermediate imports, their exports to COVID-19 infected nations could take a hit.
The combination of reduced Chinese imports, significant supply chain disruptions, including extreme competition for shipping containers across the globe, and rising dairy surpluses in export regions will keep downward pressure on global markets through much of 2020.
The underlying assumption is that many of the disruptions in China will normalize by the end of Q2 2020, with evidence of improvement in some supply chains already visible at the present time.
There is a risk that the global contract logistics market could contract 10.2% in 2020, as COVID-19 disruption strangle production and freeze retail in key logistics intensive sector.
Industrial fabrication is set to take a hit this year, with losses expected across all the major sectors, with the rapid spread of COVID-19 disrupting supply chains globally and threatening to drag the global economy into downturn.
The plans by Huawei come as it faces pressure on other parts of its business, with shipments in its core smartphone segment expected to decline this year for the first time as the coronavirus pandemic hits both global supply chains and consumer demand.

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Last updated: 23 May 2020