10 Global Supply Chain Issues to Watch in 2H 2018 news by Hebei Longsheng
| From $300 billion to the Midterms – 10 Global Supply Chain Issues to Watch in 2H 2018 The first half of 2018 brought significant challenges for global supply chains ranging from shifting trade policy to rising costs. The second half of the year won’t be any quieter. The most pressing issue is the emerging tariff battle between the U.S. and China which could inflict duties on at least $300 billion of trade by year end. China is also trying to close the RCEP trade deal while the U.K. struggles with Brexit terms and sanctions against North Korea, Iran and Venezuela continue. The container-lines are facing a decline in profits, while the ports may have to contend with technological and weather disruptions and the freight forwarders need to decide whether to consolidate. The logistics industry overall may face a “peakier” peak season as the prospect of tariffs leads to earlier-than-normal imports in the U.S. Yet, the second half could be defined by the U.S. midterm elections where there are nine Republican Senate seats up for grabs. Should they flip to Democrat that could change the complexion of the Senate – including its willingness to restrain President Trump’s section 232 tariff tool and pass an “up vote” on NAFTA (the future for which is far from clear anyway). Chinese duties appear to have specifically targeted products (including oil, meat and medical devices) which are significant exports for the eight states where those Republican seats are held. Hebei Longsheng Metals and Minerals Co. Ltd. |
