ESSAY

The world as we used to know has change severely since the covid 19 started , one of
the biggest problems we are facing nowadays is the shortage in the supply of goods ,
this problem is affecting all over the world , I personally believe that this problem is
due the crisis of the containers and also because of the raise in export prices as result
of the container crisis . This problem is affecting even to the first world countries, for
first time those countries like United States and many countries in Europe are facing
the shortage in the supply of goods. following BBC news a lot of companies on
industries like food , clothes ,cars, supply of materials and much more are late in their
orders because the lack of containers and this could take maybe one year until they
can complete all the orders.

As I said this problem started with the covid 19 when many containers full of loads
stood in different ports around the world, as result of this problem and due to the
continuous demand for containers, it generated a crisis with containers freight that
caused the disproportionate increase of the prices , the prices increased between
200% to 500% much more than what they used to pay for the freights . for example in
China used to pay 2000$ to take one container to USA now they are paying almost
24000$.

Is well know that china have 8 of 10 main and biggest port in the world and due the
covid 19 restrictions those ports are not working in the capacity they used to do it ,so
as result of that , there are a kind of shipping traffic jam because a lot of companies
refuse to pay the container freight so there are hiring shipping companies with the
entire capacity to transport their products, instead of using containers and also it is
rainy and typhoon season so there is a large list of cargo ships waiting to sail.

Another problem that is happening around the world is the shortage of energy , this
problem is affecting mainly in the European and Asian continent , there are three main
problems for the energy shortage , the first one is that they use coal mines to generate
energy and coal mines produce pollution ,so coal mines are closing to help to reduce
pollution because is well known that Asian continent generate a large part of the
worlds carbon dioxide . Second its rainy and typhoon season so they are having
problems to work and also this is generating a lot of issues and accidents inside the
mines so for the welfare of the employees ,there are approximately 60 coal mines that
stopped in China , and third problems is the rise of price of the coal to be much more
specific thermal coal that is used to produce energy , its being paid for thermal coal
around 243$ per metric ton , that means that the cost for the production of energy will
raise and energy will be a little much more expensive as it used to be. In this case the
most affected countries are China and India. In both countries the expectation that the
cost of energy will increase much more in the next days, they are expecting record
prices in energy.

To conclude my essay I would like to say that the world health crisis caused by COVID-
19, which paralyzed the world for many months, has a series of negative effects on the
economy of countries and societies as described above, causing a sustained increase in
the prices of imported products and also of those locally produced products that
require imported raw materials for their production.

The lack of products and raw materials, in the immediate future, is already causing
supply problems for stores, supermarkets, workshops, factories and industries in the
USA, EU countries and India, among other countries. This in turn generates a
competition among these large nations for the largest amount of containers and ships
to guarantee their markets. This will also cause in the short term a greater crisis for the
less developed countries, because the products acquired will take longer than
estimated. As a consequence, a shortage of products is foreseen for the Christmas
season, a period in which the economies of the countries have a strong monetary
impulse, due to the high demand generated.

This in turn will cause that, due to the scarcity of new products to be marketed, the
value of the products that are currently marketed will increase, resulting in a lower
purchasing value of our money. This looming crisis may be an opportunity to improve
the sale of domestic production, which could fight to win the space left in the market,
generated by the lack of imported products and by the increase in their prices.