About an invasion, lock downs and dry pumps: a supply chain disruption analysis

The year 2022 has kicked off with significant events in the economic arena. These events though seeming far away from the African continent which continues to grapple with reviving the economies battered by impact of the COVID-19 pandemic, are events that need to be monitored closely due to their potential to disrupt African economies all over again.

The Russia-Ukraine war which began in February is a war that has reaffirmed now more than ever that the world is really a global village. As the 2 countries assert their sovereignty through military might, the world is slowly coming to terms that being a spectator in this war is akin to shooting yourself in the foot today with an anticipation to run and win a marathon tomorrow. Totally hopeless! Russia and Ukraine are major exporters of key raw materials such as; cereals, iron and steel across the globe and with this invasion there are significant challenges in accessing these countries safely nor any assurance on the condition or reliability of the existing infrastructure. This invasion has disrupted supply chains thus demanding players to re-strategize, respond swiftly to the disruption, and rethink operations to avoid a bad situation getting any worse. This has brought to the fore the need to seek alternative sources from regional and global markets as an option in case of disruption and crisis.

The City of Shanghai in China reported its highest number of COVID-19 cases since the beginning of the pandemic, over 2 years ago. As a response, the city has been put in a city-wide lock down with residents being required to stay home. Shanghai Port is the largest Port in China and the world. Owing to the sheer volume of trade through this port and its effect on the local population, Shanghai has been designated as one of the 4 large port megacities across the globe. The Shanghai Pudong International Airport (PVG) is amongst the top busiest airports in the world and has dealt with flight cancellations and delays because of this lock down. These interventions have a ripple effect across the world due to delays for both importers and exporters from this world’s manufacturing powerhouse and creates further challenges for airlines and shippers in future.

Fuel shortages are being experienced in various African countries that have posed challenges in sectors relying on fuel in service delivery. In the month of April 2022, cargo transporters in Kenya were struggled to fuel trucks so as to move cargo leading to delays in collecting and delivering cargo to or from the Port of Mombasa. The situation, should it persist, could potentially lead to port congestion due to uncollected cargo and result in customer dissatisfaction emanating from service delays. Embracing innovation to determine solutions will highlight available opportunities such as use of alternatively powered trucks such as electric.

Perpetual disruption is now the new normal. Traditional approaches to trade have now been put to test. Supply Chain players will now need to develop contingency plans as a reaction to disruption in whichever form it presents itself. There’s need to reduce over reliance on traditional ways to access source and customer markets. Stability and business continuity will best be approached with a constant finger on the pulse and react aligned to the market dynamics.

Meshack Kipturgo – Chief Executive Officer/ Group Managing Director

As The Pandemic Slows Down, Russian – Ukraine Conflict Leaves Logistics Industry In Turmoil

Two forces drive businesses around the world; supply and demand. Both forces are pegged on the availability and accessibility of products and services to ensure

About an invasion, lock downs and dry pumps: a supply chain disruption analysis

The year 2022 has kicked off with significant events in the economic arena. These events though seeming far away from the African continent which continues

Powering Trade in Manufacturing

Kenya’s vision to move to a middle-income economy driven by industrial transformation is hinged on its ability upscale the manufacturing sector and offer products that
Siginon banned products

How Logistics Keeps Mothers Smiling

Mother’s Day is observed every year with dates varying across different geographical areas. This day is set aside to celebrate the gift that is motherhood

Ecommerce Thrives Against A Background Of A Solid Logistics

The 2018 United Nations Conference on the Trade and Development (UNCTAD) Business-to-Consumer E-commerce Index ranked Kenya in 7th position in ecommerce uptake in Africa and

Siginon Complements SGR Last Mile Logistics With New Trucking Fleet

The Kenya Standard Gauge Railway (SGR) launched in 2017 has introduced an additional efficient cargo movement option from the Port of Mombasa into Nairobi and

Logistics Firms Focus On Global Benchmarking To Ensure Service Excellence

Transport and logistics firms continue to ensure their service levels are benchmarked against global standards to boost customer satisfaction. Across the logistics service spectrum, various

Logistics Outlook 2020

The year 2020 marks the beginning of new decade. The logistics industry across the globe has experienced great disruptions from the year 2010 to the

Trade In The Time Of Corona

The world is today grappling with the Corona Virus (COVID-19) that has continued to snuff out the life of thousands across the globe. This newly
Feature image not available

Valentines: where love & Logistics Connect

“The rose is a flower of love. The world has acclaimed it for centuries. Pink roses are for love hopeful and expectant. White roses are

The people Factor is at the Centre of Enterprises That Succeed

Mark Twain a renown American writer said, “Wrinkles should merely indicate where the smiles have been.” This quote asserts that age is best seen in

Logistics without Borders will enhance trade in Africa

By Meshack Kipturgo A recent tweet from the Federation of Kenya Employers (FKE) Chairman stated ‘Now Uganda and Tanzania are exporting more food to Kenya

Time for Local Players to Consolidate Ahead of the Foreign Onslaught

By Meshack Kipturgo While Kenya’s attention has been on the electioneering period, there have been a series of exciting acquisitions in the fresh produce industry

Siginon Drives Warehousing Business with Cloud Technology

Real estate players have identified warehouses as a growing property class in Sub Saharan Africa. Unfortunately, the demand for warehouses outweighs the availability for the

The ‘New Normal’ in Trade & Logistics

Players in the Transport and logistics sector continue to keep economies afloat and play a leading role in the global fight against the COVID-19 pandemic.

Let’s Fight the Pandemic & Not The Front Line Heroes

Players in the essential services sector play a critical role in keeping economies going as the world is engrossed in the COVID-19 battle. Essential services
Feature image not available

Coronavirus: A resilient logistics sector can save lives and livelihoods

The COVID-19 pandemic has dealt a massive blow to the global economy. On the supply side, factories and businesses have been forced to close temporarily

Celebrating African Enterprises

African Business Magazine in its May 2020 issue ranked the top 250 African companies. The listing captured various sectors in a ranking that is often

Leave a Reply

Your email address will not be published. Required fields are marked *