Gavin Kelly, chief executive officer of The RoadNo one would have thought that we would see such increases in the fuel price as we have experienced over the past six months.
The conflict is also seen to be driving macroeconomic shifts and a reorientation of trade and supply chains, notes research & consulting firm, Frost & Sullivan. Ships need fuel, and those costs are rising, said Kelly. There are still fewer ships at sea due to the pandemic, and there are constraints in the global logistics chains that not only articulate into delays, but into demand, which has an upward price-pressure effect, he said.
“Already, some transporters closed their doors due to the effects of the Covid pandemic. Financial pressures have remained on the increase, and the unrest that continues to ferment, radically shown by the violent period in July 2021 when the whole logistics chain was attacked, continues to wear down companies and cause more closures.