The attacks on Ukraine have even had an effect on logistics, as many transport companies have had to change routes to supply inputs to the industry.
Due to the changes in the transport routes of goods caused by the conflict between Russia and Ukraine, the logistical disorder is seen as the first consequence of the war in Eastern Europe, alongside the high prices of commodities such as oil and gas. The view on the risk of another crisis in the raw material chain is different according to each sector, as industries that depend on imports are much more concerned than those that use resources from local producers.
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As published in broadcast site by Eduardo Laguna, different from the large increase in commodity prices, which caused a generalized and almost instantaneous impact on the production cost of industries, for the time being there is no evidence that certain inputs are threatened. However, as the situation is very unstable, this can change if the conflict lasts for a long time.
One of the most delicate issues is the shortage of electronic items, as it has been the main source in the production of automobiles and electronic products for over a year.
Preliminary studies regarding the effects of the war were discussed yesterday, March 07, during a press conference by the leaders of the Industry Coalition, a group that includes representatives from 03 industrial areas, from the toy to vehicle sector, and which has good relationship with the government.
According to Humberto Barbato, president of the Brazilian Electrical and Electronics Industry Association (Abinee), which produces devices such as notebooks and cell phones, the conflict is capable of worsening the semiconductor crisis, an essential material in the manufacture of electronic products. This is possible since the key gas during the chip production process is a Russian by-product, whose purification takes place in Ukraine.
“Apart from the human aspect, from an economic point of view, we may have the problem of semiconductors aggravated by the lack of essential raw materials for their production”, said Barbato.
For the president of Abinee, this new impediment should not immediately disturb the world industry, however, it should soon compromise the factories, since they work with minimal stocks of raw materials. “It's all the more reason for this war to end as soon as possible,” he says.
José Velloso, president of the Brazilian Association of Machinery and Equipment Industry (Abimaq), believes that the problem in the logistics for supplying metals should not be a limitation, taking into account that domestic steel suppliers meet most of the industry's demand metalmechanics. “The war affects costs, but we don't see a problem with inputs to produce here,” said Velloso.
The caveat of the industries is that this may change if the war lasts for a longer period of time. Readjusting logistics routes is one of the first and most important challenges for companies engaged in foreign trade.
The president of the Brazilian Plastic Industry Association (Abiplast), José Ricardo Roriz Coelho, mentioned the reduction in the frequency of ships with logistics affected by the conflict, a major setback for delivery times. Although there are high prices, Roriz does not see disruptions in the supply of fossil fuels and natural gas used in the manufacture of plastic – again, depending on the duration of the geopolitical conflict.
However, a further increase in freight will be inevitable with prices per barrel of oil constantly rising. According to Fernando Pimentel, president of the Brazilian Association of the Textile and Apparel Industry (Abit), the values of the goods logistics process – which have already reached “dramatic contours” due to the difficulties in contracting vessels and the availability of containers in the pandemic – are expected to rise again. “If the conflict persists, the tendency is for transfers to freight costs, putting more fuel on the fire in world inflation”, stated Pimentel.
