Muhamad Fadhil, VP – Petrochemicals, Argus, is joined by Dr. Abdulwahab Al-Sadoun, Secretary General of the GPCA, to discuss the regional and global petrochemical supply chains and lifecycles in a Covid-19 environment.
Dr. Sadoun also shares his thoughts on how companies are taking steps to address high container rates and promptly moving towards sustainable supply chains and digitization.
The Middle East petrochemical industry saw a significant wave of changes and supply chain disruptions since the start of the Covid-19 pandemic in 2020. Rising container freight rates from Middle East to US, Europe and Asia impacted regional producers and their petrochemical export strategy. Higher freight rates erode margins in highly oversupplied petrochemical markets, where Middle East producers face increased competition.
Looking into the longer term, international shipping companies are actively promoting digitization in logistics, shipping and supply chain management. Covid-19 accelerated this move due to an increasing need for contactless supply chains, but digitization would also lower costs and reduce the need for paperwork for regional and global players.