Blockade in Suez Canal hits global economy
The blockade in the Suez Canal, along with other disruptions in global supply chains, is becoming a problem for the global economy, which is still suffering from the pandemic. European companies in particular will be hit hard. The global supply and value chains have been under enormous pressure for months.
But even though the traffic jam between Suez and Port Said has cleared, there will likely be continued delays in world trade due to significantly more ships than usual arriving at the destination ports around the globe at once, according to Eva Savelsberg, Head of Logistics at INFORM, an IT company that advises ports and airports on the handling process.
The Suez blockade will be resolved and worldwide movement of goods will be able to flow undisturbed again. However, the effects of such delivery disruptions can still be felt for months.
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Hyundai to suspend production in South Korea due to chip shortage
South Korea’s Hyundai Motor Co plans to temporarily suspend production at its Ulsan No. 1 plant due to chip and component supply issues from April 7-14. The supply issues involve front view camera systems for Kona sport utility vehicle (SUV) and power electric modules for the IONIQ5.
The automaker was until recently one of the automakers least affected by the chip shortage, mostly because it maintained a large stockpile of chips, unlike its global peers. Honda Motor Co Ltd and General Motors Co both announced last week that they would continue production suspensions at plants in North America for the coming weeks, one of the reasons being due to the chip shortage.
Factory shutdowns, booming demand for laptops and tablets, and sanctions against Chinese tech companies also caused chip shortages in December. It was originally only in the auto industry, but the shortage has since widened to affect a range of consumer electronics, including smartphones.
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Deutsche Post DHL Group dedicating $8.25 billion to green tech
Deutsche Post DHL Group is investing $8.25 billion in green technologies between now and 2030 to help fight climate change. As part of its sustainability strategy, the company also made a commitment to donate 1% of net profits to social impact projects and programs.
DPDHL has not disclosed where the $8.25 will go, but the majority will likely be dedicated to aviation and delivery vehicles due to how large the goals are in those areas. Investments in green buildings will follow closely behind.
DHL Supply Chain’s 140 million-plus square feet of building space in North America already has minimum efficiency standards with LED lighting and HV/AV systems. It is also installing rainwater catchment systems and solar panels at some of the newer buildings.
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