The supply chain was heavily affected by the Ukraine war

Data provider Scoutbee has published its latest analysis of supply chains affected by the ongoing war in Ukraine. Scoutbee also concluded that the war in Ukraine will push fragile supply chains to the brink of breakage and disruption, severely shorting supply for many industries.

Which sectors were affected by the Ukraine war?

How will the war situation in Ukraine affect the global supply chain, which areas are directly affected by this war?

Automobile manufacturing industry

The ongoing Russo-Ukrainian war reduced the production of millions of new cars and trucks globally. In the short term, it is expected to have a direct impact on local production and will spread to the entire auto industry if the conflict persists.

These fluctuations cause inflation to increase, car prices to rise. In addition, it also leads to a shortage of supply.

Scoutbee also shows that the harness works in the vehicle's electrical system, the first part is installed on the new car, and without it the whole assembly line is forced to stop.

Automobile manufacturing industry

Chemistry

Germany has stopped certifying Nord Stream 2, a 1,234km natural gas pipeline from Russia to Germany. The EU is looking to cut 80% of gas supplies that depend on Russia. Many leading oil and gas companies, including: BP, Exxonmobil and Shell have ceased operations.

Since oil and gas are essential to many supply chains, Scoutbee said, "disruption of these vital resources will have widespread and severe economic consequences."

Aviation

Locally, airlines such as Airbus and Boeing have withdrawn from Russia, which is a heavy impact when these two companies are supplying more than 600 aircraft between Russia and Ukraine.

Given the volatility, Scoutbee said: "It's not clear how long it will take for these airlines' spare parts supplies to run out, possibly weeks or months."

In addition, Scoutbee also added: "Most of the current commercial aircraft owned by Russian airlines are leased from Western countries, and the leasing companies are asking Russia to return the aircraft. fly for them.”

This greatly affects the process of circulation and transportation of goods.

Aviation

Consumer electronics industry

The war in Ukraine has affected global energy markets, as well as causing shortages and rising prices of semiconductors.

Ukraine and Russia are both top suppliers of neon gas, which is used in lasers and chip manufacturing. Russia is also a major producer of palladium, a rare metal used in computer components, sensors and fuel cells. This severely affects the global supply chain, which is already scarce in semiconductors.

Electronics manufacturers also need to buy nickel to make batteries. Because Russia supplies up to 20% of the world's premium nickel. Therefore, price increases and supply difficulties will be inevitable if the conflict persists.

Construction industry

Besides the consumer electronics industry, Russia and Ukraine are also two major suppliers of metals, raw materials, chemical products, and machinery in the construction sector.

With this situation, it will be difficult for both countries to produce and supply this material, which will have a significant impact on the global construction industry.

First, it is not excluded that prices will increase, the market has to find alternative sources and supply chains. In addition, Russia supplies 30% of oil and 40% of natural gas to Europe. Along with that, materials used in construction containing carbon oil and energy used in production will be affected by rising inflation.

“Higher oil and gas prices also affect the cost of manufacturing and transporting equipment, materials and other parts,” said Scoutbee. In addition, military operations are difficult to transport goods in the Black Sea”.

From the above information, we can see the enormous impact from the war between Russia and Ukraine on the supply chain in particular and the economy in general. I don't know what other difficulties will be if this thing continues to drag on?

According to supplychaindigital.com