The Ukrainian invasion is adding chaos to global supply chains

And if the conflict is prolonged, it can happen Threatening the summer wheat crop, which flows into bread, pasta, and packaged foods for large numbers of people, particularly in Europe, North Africa, and the Middle East. food prices has already gone up Because of disruptions in the global supply chain, increasing the risk of social unrest in poor countries.

On Tuesday, global shipping giant Maersk announce It will temporarily suspend all shipments to and from Russia by ocean, air and rail, except for food and medicine. Ocean Network Express, Hapag-Lloyd and MSC, the world’s other major marine carriers, announced a similar comment.

Russia accounts for about a fifth of global trade in natural gas, and both Russia and Ukraine are major exporters of wheat, barley, corn, and fertilizers.

“War is only making the global commodity situation more dire,” said Christopher F. Graham, partner at White and Williams.

Jennifer McKeown, head of global economics service at Capital Economics, said the global economy appeared relatively insulated from the conflict. But she said shortages of materials such as palladium and xenon, used to make semiconductors and cars, could add to those industries’ current difficulties. It has a shortage of semiconductors Production stopped At auto plants and other facilities, fueling price increases and affecting sales.

“It could add to the shortages we’re already seeing, exacerbate that shortage, and end up causing more damage to global growth,” she said.

International companies are also trying to comply with sweeping financial sanctions and export controls imposed by Europe, the United States and a number of other countries that have restricted the flows of goods and money to and from Russia.