Predicting the end of the port crisis is difficult, says expert

There is no end in sight for the port crisis, intensified by the Covid-19 pandemic which disrupted supply chains. According to the director of FGV Transportes, Marcus Quintella, the resumption will be “gradual”.

In an interview with CNN Radio this Wednesday (25), Quintella says that it is still difficult to talk about the estimated time for the normalization. “The forecast to normalize depends on the behavior of the pandemic, there is still a lot of fear around the world of returning to activities.”

In addition, he explains that it will be necessary to meet a repressed demand accumulated during the restrictions at the ports: “It will start with the markets of Europe and the United States, Brazil would be waiting in line as if we were waiting for congestion to dissipate. This can last another 6 months or 1 year, it depends on variables that there is no way to predict”.

Quintella reinforced that the pandemic brought an “unparalleled disorganization” in the logistics of international trade, with congestion at the ports, very high freight values ​​, and an impact on the supply chain. In addition, of course, to restrictions between ports.

He points out that there is an estimate that 353 ships in the world are currently facing problems docking. According to the specialist, Brazil is “not very significant” in this sector, as it represents only 1% of the world trade in containers and is outside the main routes.

This scenario brings another problem: as the country imports more containers than it exports, the cost increases, especially with the freight value. This is because cargo coming from China, for example, will most likely return with empty cargo, making the process more expensive with the “lost” trip.

Source: CNN

To read the full original article, visit the link:  https://www.cnnbrasil.com.br/business/prever-fim-da-crise-portuaria-ainda-e-dificil-diz-especialista/

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