Logistics havoc boosting costs for consumers

摘要

Consuming markets of commodity raw materials are under pressure yet again from a combination of renewed increases in sea freight costs and overstretched logistics, making delivery schedules unreliable and causing long delays at a time when suppliers are tightening contract terms to reduce liability. While industry analysts debate fiercely over whether a new commodity supercycle (a period of consistently high commodity prices against historic levels) is under way or not, pressure points have built up in mining supply chains between origins in Asia - especially China - and western destination markets. The sector is facing a second round of the logistics headaches out of China that first hit last October-November, characterized by a shortage of containers, vessel space and vessels altogether.