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Disruption
In recent years , several supply chain issues have blighted the holiday season . From stocking up on gas for European homes in the wake of the Russian war on Ukraine to the effects of the Covid-19 pandemic on production cycles , disruptions in the supply chain are close to becoming the norm . Retailers across the globe , especially as they stock up for their best season in the year , should urgently address their levels of preparedness as the countdown to this holiday offers more new hurdles to tackle .
The Houthi attacks in the Red Sea , rail strikes in Canada , an expected recordbreaking hurricane season , and the closure ( albeit for 80 fraught hours ) of the Ningbo Port in China due to a container explosion on the YM Mobility are all reminders of the vulnerabilities affecting the supply chain . In a global economy , these incidents are not isolated events but have severe repercussions that see retailers in Europe and the US , for example , bracing when an issue affects a port in China like Ningbo , which handles nearly 29 percent of China ’ s total vessel traffic . With the holiday season just around the corner , the pressure is on .
The ripple effect of global disruptions
Any stage of the logistics network can cause issues , and often , although a solution is found , it can lead to further consequences . One example is the cost increases and longer routing times caused by Houthi attacks in the Red Sea . This is particularly impacting European retailers sourcing from Asia , with 66 percent of ships forced to divert around the south of Africa to circumvent the Suez Canal , which adds anywhere between 12 days to three weeks to the timelines of moving stock from Asia to the UK by sea . scw-mag . com 21