One virus, one stuck ship spark global trade rethink – News 24-7 Live News 24-7 Live
One virus, one stuck ship spark global trade rethink

One virus, one stuck ship spark global trade rethink

Against this backdrop, governments and businesses alike are bringing production back home where it may be more expensive but at least is more secure.

A virus visible through only the most powerful microscopes and a huge container ship stuck in the Suez canal visible from space highlight how fragile the “just-in-time” global trade system can be.

Businesses no longer hold large stocks of materials and parts at great expense, instead they rely on regular and even daily shipments of what they need.

Japanese auto giant Toyota developed the just-in-time logistics system to cut supply chain costs and the model has been universally adopted.

But it has a potentially key weakness — it only needs one link to break and the whole supply chain quickly comes to a halt.

As demonstrated by the stranding of the massive Ever Given container ship in the Suez Canal which blocked one of the world’s most important shipping channels for a week until it was freed on Monday.

News Source:- Money Control

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