Omicron variant hits global supply chain

22 Dec 2021 CW Team

The Omicron variant can cause logistic disruptions at the peak season at the end of 2021 as it slowed down major ports and the global supply chain, with shipping and air freight rates at their highest.

The Shanghai Containerized Freight Index (SCFI) increased by 125.09 points to 4,727.06 points last week, the highest even since October 2009. It has increased to over triple from October last year from 1,438.2 points.

The SCFI lowered to 4,535.92 points in the four consecutive weeks and hit the highest, 4,647.60 points on 8 October. The freight rates to the West Americans, major import routes, including Korea, have increased by $289 to $7,019.

As per the Korea Ocean Business Corporation, 80 ships are waiting for unloading near LA and Long Beach Ports, on the west coast of North America. This congestion continued due to the lockdown of the Suez Canal and worsened due to the Omicron variant.

As per the TAC Index, the average freight rates from Hong Kong to North America were $11.54 per kg in November, which is the highest ever. In June, the freight rate increased to $7.89, $7.90 in July, $8.64 in August, $9.74 in September and $9.94 in October.

Export companies are worrying due to increasing freight rates due to the biggest shopping season, including Christmas, it may deteriorate due to increased freight costs and difficulty to get ship spaces and make a profit.

Small and medium-sized companies sign short-term contracts, unlike the bigger companies that sign long-term contracts, the burden of freight costs are increasing. The companies that produce domestically, compared to local producers, are being hit the most.

Image Source

Real Estate

05 Aug 2026

CREDAI-MCHI to Host 10th Design & Construction Conference

CREDAI-MCHI will host the 10th anniversary edition of its Design & Construction Conference on August 19, 2026, at the Jio World Convention Centre in Mumbai.The event is expected to bring together more than 500 procurement leaders, construction heads, architects, consultants and senior real estate decision-makers, alongside over 50 construction and ancillary brands.The conference will feature product launches, technology showcases, knowledge sessions, strategic business-to-business networking and recognition of procurement professionals contributing to the transformation of the construction..

BorgWarner Wins Extension for High-Voltage Inverter Programmes

BorgWarner has secured a major extension of several high-volume high-voltage inverter programmes from a leading European automotive manufacturer.The contracts cover updated inverter designs for plug-in hybrid and 800V battery-electric vehicle applications. Production is scheduled to begin in 2029.Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said the programme extensions demonstrate the company’s position in power electronics and reflect the strength of its technology, in-house expertise and customer relationships.For plug-in hybrid vehicles, BorgWarner wil..

Castrol India Q2 Profit Rises 43% to Rs 3.48 bn

Castrol India reported a 43 per cent year-on-year increase in profit after tax to Rs 3.48 billion for the quarter ended June 30, 2026, supported by growth across its consumer, industrial and institutional businesses.Revenue from operations increased 25 per cent to Rs 18.71 billion during the second quarter of 2026, compared with Rs 14.97 billion in the corresponding period of 2025. EBITDA rose 41 per cent to Rs 4.94 billion from Rs 3.50 billion.Sequentially, revenue increased from Rs 15.45 billion in the first quarter of 2026, while EBITDA rose from Rs 3.29 billion. Profit after tax increased ..