Tag Archives: virus variant

Global supply chains buckle as virus variant and disasters strike

By Jonathan Saul, Muyu Xu and Yilei Sun

LONDON/BEIJING (Reuters) – A new worldwide wave of COVID-19. Natural disasters in China and Germany. A cyber attack targeting key South African ports.

Events have conspired to drive global supply chains towards breaking point, threatening the fragile flow of raw materials, parts and consumer goods, according to companies, economists and shipping specialists.

The Delta variant of the coronavirus has devastated parts of Asia and prompted many nations to cut off land access for sailors. That’s left captains unable to rotate weary crews and about 100,000 seafarers stranded at sea beyond their stints in a flashback to 2020 and the height of lockdowns.

“We’re no longer on the cusp of a second crew change crisis, we’re in one,” Guy Platten, secretary general of the International Chamber of Shipping, told Reuters.

“This is a perilous moment for global supply chains.”

Given ships transport around 90% of the world’s trade, the crew crisis is disrupting the supply of everything from oil and iron ore to food and electronics.

German container line Hapag Lloyd described the situation as “extremely challenging”.

“Vessel capacity is very tight, empty containers are scarce and the operational situation at certain ports and terminals is not really improving,” it said. “We expect this to last probably into the fourth quarter – but it is very difficult to predict.”

Meanwhile, deadly floods in economic giants China and Germany have further ruptured global supply lines that had yet to recover from the first wave of the pandemic, compromising trillions of dollars of economic activity that rely on them.

The Chinese flooding is curtailing the transport of coal from mining regions such as Inner Mongolia and Shanxi, the state planner says, just as power plants need fuel to meet peak summer demand.

In Germany, road transportation of goods has slowed significantly. In the week of July 11, as the disaster unfolded, the volume of late shipments rose by 15% from the week before, according to data from supply-chain tracking platform FourKites.

Nick Klein, VP for sales and marketing in the Midwest with Taiwan freight and logistics company OEC Group, said companies were scrambling to free goods stacked up in Asia and in U.S. ports due to a confluence of crises.

“It’s not going to clear up until March,” Klein said.

MORE PAIN FOR AUTOMAKERS

Manufacturing industries are reeling.

Automakers, for example, are again being forced to stop production because of disruptions caused by COVID-19 outbreaks. Toyota Motor Corp said this week it had to halt operations at plants in Thailand and Japan because they couldn’t get parts.

Stellantis temporarily suspended production at a factory in the U.K. because a large number of workers had to isolate to halt the spread of the virus.

The industry has already been hit hard by a global shortage of semiconductors this year, mainly from Asian suppliers. Earlier this year, the auto industry consensus was that the chip supply crunch would ease in the second half of 2021 – but now some senior executives say it will continue into 2022.

An executive at a South Korea auto parts maker, which supplies Ford, Chrysler and Rivian, said raw materials costs for steel which was used in all their products had surged partly due to higher freight costs.

“When factoring in rising steel and shipping prices, it is costing about 10% more for us to make our products,” the executive told Reuters, declining to be named due to the sensitivity of the matter.

“Although we are trying to keep our costs low, it has been very challenging. It’s just not rising raw materials costs, but also container shipping prices have skyrocketed.”

Europe’s biggest home appliances maker, Electrolux, warned this week of worsening component supply problems, which have hampered production. Domino’s Pizza said the supply-chain disruptions were affecting the delivery of equipment needed to build stores.

U.S. AND CHINA STRUGGLE

Buckling supply chains are hitting the United States and China, the world’s economic motors that together account for more 40% of global economic output. This could lead to a slowdown in the global economy, along with rising prices for all manner of goods and raw materials.

U.S. data out Friday dovetailed with a growing view that growth will slow in the last half of the year after a booming second quarter fueled by early success in vaccination efforts.

“Short-term capacity issues remain a concern, constraining output in many manufacturing and service sector companies while simultaneously pushing prices higher as demand exceeds supply,” said Chris Williamson, chief business economist at IHS Markit.

The firm’s “flash” reading of U.S. activity slid to a four-month low this month as businesses battle shortages of raw materials and labor, which are fanning inflation.

It’s an unwelcome conundrum for the U.S. Federal Reserve, which meets next week just six weeks after dropping its reference to the coronavirus as a weight on the economy.

The Delta variant, already forcing other central banks to consider retooling their policies, is fanning a new rise in U.S. cases, and inflation is running well above expectations.

‘WE NEED TO SUPPLY STORES’

Ports across the globe are suffering the kinds of logjams not seen in decades, according to industry players.

The China Port and Harbor Association said on Wednesday that freight capacity continued to be tight.

“Southeast Asia, India and other regions’ manufacturing industry are impacted by a rebound of the epidemic, prompting some orders to flow to China,” it added.

Union Pacific, one of two major railroad operators that carry freight from U.S. West Coast ports inland, imposed a seven-day suspension of cargo shipments last weekend, including consumer goods, to a Chicago hub where trucks pick up the goods.

The effort, which aims to ease “significant congestion” in Chicago, will put pressure on ports in Los Angeles, Long Beach, Oakland and Tacoma, specialists said.

A cyber attack hit South African container ports in Cape Town and Durban this week, adding further disruptions at the terminals.

If all that were not enough, in Britain the official health app has told hundreds of thousands of workers to isolate following contact with someone with COVID-19 – leading to supermarkets warning of a short supply and some petrol stations closing.

Richard Walker, managing director of supermarket group Iceland Foods, turned to Twitter to urge people not to panic buy.

“We need to be able to supply stores, stock shelves and deliver food,” he wrote.

(Additional reporting by Anna Ringstrom in Stockholm, Lisa Baertlein in Los Angeles, Hilary Russ in New York, Joe White in Detroit, Lucia Mutikani and Howard Schneider in Washington and Heekyong Yang in Seoul; Editing by Simon Webb, Dan Burns and Pravin Char)

Immune response may be linked to AstraZeneca vaccine clot issue; death risk rising among young adults in Brazil

By Nancy Lapid

(Reuters) -The following is a roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for COVID-19, the illness caused by the virus.

Immune response may explain rare clots after AstraZeneca vaccine

Researchers may have found an explanation for the rare but serious blood clots reported among some people who received AstraZeneca’s COVID-19 vaccine. They believe the phenomenon is similar to one that rarely occurs with a blood thinning drug called heparin, called heparin-induced thrombocytopenia (HIT). In HIT, the drug triggers the immune system to produce antibodies that activate platelets, which cause blood to clot. Drugs other than heparin can cause clotting disorders that strongly resemble HIT, and researchers suspect that in rare cases, the AstraZeneca vaccine may be another such trigger. Four previously healthy individuals who got the AstraZeneca shot and developed life-threatening clots had the same kind of antibodies that activate platelets and initiate clotting in HIT, the researchers reported on Monday in a paper posted on Research Square ahead of peer review. Twenty individuals who received the vaccine but did not develop clots did not have these antibodies. An editorial comment posted with the study noted that drug-induced thrombocytopenia is treatable if identified promptly. Millions of people have received the vaccine without issues and European regulators and the World Health Organization say the benefits of the AstraZeneca shot outweigh its risks.

COVID-19 death risk rising for young adults in Brazil

Southern Brazil is seeing a sudden rise in COVID-19 deaths among young and middle-aged adults after the identification there of a concerning virus variant known as P.1, researchers said. They analyzed data from Parana – the largest state in southern Brazil – on 553,518 cases diagnosed from September 2020 through March 17, 2021. In all age groups, the proportion of patients who died either held steady or declined between September and January. Starting in February, however, fatality rates rose for almost all groups over age 20, according to a report posted on Friday on medRxiv ahead of peer review. From January to February, these rates tripled among patients aged 20 to 29, from 0.04% to 0.13%, and doubled among those aged 30 to 39, 40 to 49, and 50 to 59. “Individuals between 20 and 29 years of age whose diagnosis was made in February 2021 had an over 3-fold higher risk of death compared to those diagnosed in January 2021,” the researchers said. “Taken together, these preliminary findings suggest significant increases in case fatality rates in young and middle-aged adults after identification of a novel SARS-CoV-2 strain circulating in Brazil, and this should raise public health alarms.”

Pfizer, Moderna vaccines limit asymptomatic infections

Vaccines from Pfizer Inc and partner BioNTech SE and from Moderna Inc dramatically reduced the risk of infection by the new coronavirus within weeks after the first of two shots, according to data from a study of nearly 4,000 U.S. healthcare personnel and first responders in six states. Previous trials by the companies evaluated the vaccines’ efficacy in preventing illness from COVID-19, but would have missed infections that did not cause symptoms. In the new study, conducted from mid-December to mid-March, nearly 75% of participants had received at least one dose of vaccine, and everyone had weekly coronavirus testing for 13 consecutive weeks in order to pick up asymptomatic infections. According to a report published on Monday by the U.S. Centers for Disease Control and Prevention (CDC), the risk of infection fell by 80% two weeks or more after the first of two shots and by 90% by two weeks after the second shot. “The authorized mRNA COVID-19 vaccines provided early, substantial real-world protection against infection for our nation’s healthcare personnel, first responders, and other frontline essential workers,” CDC Director Rochelle Walensky said in a statement.

Pandemic has cut parents’ access to hospitalized children

Pediatricians have long endorsed the idea that babies and children in hospitals should not be separated from their families – a practice that in many facilities was restricted or discontinued to limit COVID-19 infections, according to new research. From mid-May through early July, researchers collected survey responses from 96 pediatric care units in 22 countries in Europe, Asia, and North America. The results – mostly from intensive care units for newborns – showed that before the pandemic, 87% of units welcomed families and 92% encouraged skin-to-skin care, according to a report published in Journal of Perinatology. After the onset of the pandemic, more than 83% of the hospital units restricted family presence, with additional restrictions placed on parental participation in their infant’s care, said study coauthor Ita Litmanovitz of Meir Medical Center in Kfar Saba, Israel. Hospitals’ decisions to limit family access did not depend on their previous rules, the availability of single-family rooms, or the virus infection rate in the hospital’s geographical area. “Restrictions during the pandemic increased separation between the infant and family,” the researchers found. These restrictions, Litmanovitz added, “go against psychological and neuroscientific evidence in support of unrestricted parental presence and ability to care for their hospitalized infants.”

(Reporting by Nancy Lapid; Editing by Bill Berkrot)