While the global supply chain has been impacted significantly since the beginning of the pandemic, the recent Russia-Ukraine military crisis has brought additional economic and political uncertainty. This uncertainty is sure to further impact the already strained supply chain we’ve been dealing with over the past several years.
True Impact of Ukraine Crisis Will Depend on Length of Conflict
Moody’s Analytics recently predicted that the impact to the supply chain due to the crisis between Ukraine and Russia will depend on how long the conflict lasts. If the military operations end relatively quickly, the long term effect on the supply chain may be minimal, but if this operation continues months into the future then we could see massive disruptions to the worldwide supply chain.
Transportation Industry Significantly Impacted with Increased Fuel Prices
With Russia being a major supplier of oil to the US, a protracted crisis will further impact the transportation industry, which has already seen a massive increase in shipping costs in 2021. This in turn will impact all industries that rely on the transportation industry for supplies. Transportation and logistics are vital to the growth of our country’s economy so we hope this crisis will be short lived.
Gas prices have gone up 38% from February 2021 to February of 2022 according to data from the U.S. Labor Department. These significant increases have in turn caused the cost of consumer goods to reach a 40-year high. Further unrest in Ukraine will likely only cause these figures to continue to climb, which is bad news for the global economy.
What USA Strapping is Doing to Continue to Combat the Supply Chain Crisis
Our team at USA Strapping has been working to combat the supply chain crisis since the beginning of the pandemic. The latest crisis in Russia and Ukraine just further cements our plans to do all we can to help lessen the impact on our customers. In the past year or so, our experienced team has been anticipating global product need and thus increased our warehouse space and stockpiled as much strapping material as possible to bolster our inventory in case of additional supply chain constraints.
While we of course have been impacted by both the pandemic, as well as the latest supply chain issues, we’re committed to being completely transparent with our customers when it comes to any delays that we may experience. To learn more about the availability of any of our packaging materials, feel free to reach out to us by phone at 888-768-0001, or through our online contact form.