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  • Amir Muhaisen

Supply Chain Bottlenecks : Opportunity

The international supply chain is facing serious challenge as post-pandemic demand for products increase causing severe bottlenecks that might take years to untangle. On the other hand, this is an opportunity for chemical entrepreneurs in the middle east.

supply chain bottlenecks : chemical market

As the world's economies went into lockdown, the demand for most goods fell sharply, cargo ships stopped sailing, manufacturing capacity was cut and workers everywhere were displaced but only a few months later, imports surged and the global economy was turned back. The sudden restart created massive bottlenecks, thus shortage of shipping containers emerged and shipping rates for certain routes soared as international ports became congested, also this congestion spread to railroads and inland rail terminals.

Currently, bottlenecks are so severe that it costs companies more than 11 k USD to ship standerd 12-meter container from rotterdam to shanghai compared to approximately 2 k USD before lockdowns. Therefore, it seems to be no end to the global supply chain crisis that has led to an increase in prices and shortage of products and components worldwide.

The problem seems to be that the complex system that moves raw materials and finished products around the globe requires predictability and precision. However, with the recent viral varients scare both predictability and precision had been lost.

Spotting The Opprtunity

Chemiprobe started “probing” on fine chemical feasibility analysis in the middle east since november, considering high transportation expenses as an advantage against imported specialties, and continuously networking with professionals in active pharmaceutical ingredients, emission control catalysts, and textile dyes. Therefore, analysis reports will be published as soon as possible, feel free to contact us and participate.


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