ASEAN supply chains disrupted as delta Covid variant surges
Coronavirus outbreaks across Southeast Asia, fueled by the delta variant, are disrupting global supply chains and business activities in the region. Toyota suspended operations at all three of its factories in Thailand in phases starting July 20th. The decision followed surges in COVID-19 cases among suppliers, leaving the Japanese automaker unable to procure parts.
“The COVID-19 pandemic continues to have a significant impact on Thailand’s automotive industry, particularly in light of the recent COVID-19 outbreak that has been more severe than previously anticipated,” said Noriaki Yamashita, president of Toyota Motor’s Thai subsidiary.
The surging case numbers have hit Southeast Asian countries hard, which has prompted more stringent movement restrictions. Despite factory activity being allowed in Thailand, an outbreak at a plant could trigger a state-mandated temporary shutdown. In view of the circumstances, Honda Motor has chosen to suspend operations at one of their plants for three days.
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German exports jump despite supply bottlenecks
German exports have risen more than expected in June this year despite persisting supply bottlenecks in manufacturing, which suggested a solid recovery in Europe’s biggest economy. Seasonally adjusted exports jumped by 1.3% on the month in June after a slightly revised rise of 0.4% in May. Imports rose 0.6 % after an increase of 3.4% the prior month.
Compared to February 2020, the month before the start of the COVID-19 pandemic in Germany, seasonally adjusted exports had risen by 1.1% and imports jumped by 10%, highlighting strong domestic demand and massive state spending during the crisis.
The central bank said last month that economic growth could accelerate further this summer if there were no “significant setbacks” in the fight against the pandemic and if supply bottlenecks eased. On this condition, the Bundesbank expects the economy to reach its pre-pandemic levels at the end of the third quarter, growing 3.7% this year and 5.2% next year.
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Maersk grows e-commerce fulfillment network with Visible Supply Chain Management deal
Maersk is acquiring an e-commerce fulfillment company, Visible Supply Chain Management, which has a network of nine fulfillment centers in the USA. The warehouse network is able to reach 75% of land in the U.S. in 24 hours and 95% within 48 hours.
As the company’s existing fleet is the largest cargo operation there is, the company is increasingly interested in land-side logistics. In addition to Visible Supply Chain Management, Maersk has also announced it will acquire B2C Europe Holding B.V., a logistics company focused on parcel delivery services in Europe.
The acquisition of Visible Supply Chain Management brings not only warehouses but existing business. It fulfills around 200,000 orders a day and 200 million packages a year. “The new supply chain architecture allows more of our small and medium-sized customers to tap into the growth driven by the increased online consumer shopping.” said Vincent Clerc, CEO of ocean and logistics at Maersk.
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Have a great weekend! This was my last ever weekly wrap-up. From next week, our newest team member, Grace, will be taking over and writing fantastic supply chain weekly news wrap-ups!
