Expert: Floods In Europe Could Cause New Problems For Shipping Industry

The recent floods in Europe have « dealt another blow » to the global shipping industry, according to Tim Huxley, CEO of Hong Kong-based Mandarin Shipping. He said this on CNBC.

It is noted that new problems have emerged as the industry has barely recovered from the spring crisis caused by the Suez Canal disaster, through which up to 12% of all global shipping passes. In June, for example, the COVID-19 outbreak in Guangdong province, China, caused new difficulties as the epidemic disrupted a number of major ports in the south of the country.

Now, according to the top executive, flooding in Europe has disrupted rail and road traffic in several regions in Germany, Belgium, the Czech Republic and Slovakia, leading to disruptions in the cargo ports of Hamburg, Germany, and Rotterdam, the Netherlands. « The erosion and destruction of railway tracks has severely disrupted logistics operations, » notes Mr. Huxley, « Delays in the delivery and dispatch of cargo will affect the entire industry.

As one example, he cited a letter from the German steel company Thyssenkrupp to its customers. It said the company had declared force majeure on deliveries of some of its raw materials as of July 16. The head of Mandarin Shipping believes that the disruption in raw material supply to one of the world’s largest steel companies could very soon affect related industries such as the automotive and home appliances industries.

source: cnbc.com

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