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Aperture & Focus 2022-Dec 29, 2022

Aperture & Focus 2022-Dec 29, 2022


Global Aperture

After a price cap on Russian oil was introduced by G7 Nations, the EU, and Australia in response to Russia’s military operation in Ukraine, Russia delivered a response on December 27 in the form of a decree banning the supply of crude oil to all nations that enforce the ceiling. More than a quarter of the world’s seafarers are at risk of losing their jobs following an audit conducted by the European Maritime Safety Agency that found that the Philippines has fallen short in its compliance with international safety standards when granting competency certifications. As the Philippines’ Department of Migrant Workers rushes to find solutions, the European Commission is set to finalize their decision by the end of the first quarter of 2023.

Chinese relaxation of its strict “zero Covid” rules raises fears that the country does not have sufficient immunity to stave off  proliferation of more deadly variants while, on a positive note, the move is also likely to help boost export demand from countries like Taiwan.

Regional Focus


Even as cargo volumes in the US fell amid a slower than expected holiday shipping season, the Port of New York and New Jersey remained the country’s busiest container port complex, according to the latest data, as shippers continue to shift their favor eastward. The downturn, however, has allowed congestion to ease on the west coast, with container yards clearing at the port of Oakland and dwell times returning to pre-pandemic levels at the ports of Los Angeles and Long Beach.

Dangerous weather conditions in the US caused delays on the nation’s highways and at airports ahead of Christmas Day. Adding further anxiety amid global energy shortages, weather conditions also disrupted liquefied natural gas exports at the Gulf Coast where many services were suspended due to subfreezing temperatures. In direct response to these delays, the US and Canadian Coast Guards began their annual ice-breaking operation in the Great Lakes ahead of its typical start date in January to better meet trade demands and aid in the region’s recovery efforts.

Reversing the course laid out by the previous President, Brazil’s incoming administration announced on December 22 that they would not move forward with plans to privatize the Port of Santos, the largest seaport in Latin America. In the wake of protests that shut down the country’s roads at the end of last month, internal KWE sources report that logistics operations in Peru are not impacted at this time.




As the government backs away from its previously strict “zero-Covid” policies, new Covid outbreaks in China are beginning to affect many sectors of the supply chain, with most businesses in Guangdong, Zhejiang and Shandong shutting down temporarily by the end of December. Adding to the worry surrounding this, more restrictions are set to ease in the coming months including quarantine mandates for international travelers, requiring no quarantine period or testing on arrival. To mitigate the disruption and keep global trade operational, the Port of Shanghai has implemented a closed-loop system for overseas vessels designed to slow the spread of the virus.



Europe, Middle East & Africa

No major disruptions are expected when strikes resume on December 28 for airport workers in the UK, but more strikes are expected to shut down rails altogether when they begin in January. Egypt is facing major backlogs across the country’s ports where import restrictions have been put in place to abate the economic crisis the country has faced since Russia’s invasion of Ukraine.

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