africa, the government phase, the rush of more than a 1000 people could help spread the virus. it's awesome to leave the area and a sense, a team of geologists to find out if the stones are clamoring for really all precious diamond thought height as well. a little bit of magic has returning to paris as disney landry opens after an 8 month closure and special performance by disney characters, welcome families, and tourists to the popular theme park has been closed since october because of quite a virus and dripping plans have been canceled twice since then, but the thing of restrictions in france allowed the self appointed happiest place to open its doors once again. ah, got you all to do with me is the whole run. the reminder of all top stories, us president, joe biden and russian lead of london at the future and held what they call positive and constructive meetings. they have agreed to resume talks on arms control and

cybersecurity, but both disagree on human rights. the shirts, the nation asked the overall assessment. i believe that that has been no hospitality. on the contrary, the meeting took place in a constructive spirit. we have very assessments on the number of issues, but i believe both sides expressed willingness to understand each other and to seek ways to bilateral reproach. talks of quite constructive bind, yet the president put and i had a share unique responsibility to manage the relationship between 2 powerful and proud countries. relationship that has to be stable and predictable. and it should be able to, we should be able to cooperate words in our mutual interest and where we have differences. i want to present, put and understand why i say what i say, and why i do what i do and how will respond to specific kinds of

actions that harm america's interest. hunger please rested. 5 executives of the ample daily newspaper under the national security though are imposed by beijing that accused of colluding with what the government calls foreign enemies to hon. china and the 1st crew to be sent to join us. the space station is due to arrive shortly. the tion to 12 mission blasted off from sure one launch center. it's taking 3 astronaut for a 3 month. stay in the floating lab. and preliminary findings into the causes of deadly subway collapse in mexico city. last not places blame on structural deficiencies. investigators a pull wells, not enough stuff, and defective concrete calls. the elevated platform to collapse to subway calls were brought down on the 3rd of may, killing 26 people. that's with a headlines and back with more news and half on here on out there. next, it's inside story with dream obligated to stay with us. we understand the differences,

similarity of cultures across the world. so no matter what, i'll just bring you the news and current affairs that matter to you. i'll just the global shipping is in crisis covered 19 outbreaks have shut down major ports in southern china that's causing delivery delays and product shortages around the world. could this 0 economic recovery from the panoramic this side story? ah, ah, ah. hello and welcome to the program. i'm daddy, you navigate a covered 900 outbreak at one of the world's busiest sports in china is having a ripple effect on global trade. businesses right around the world are being warned

of delivery delays until the end of the year. and that's like the concerns about economic recovery. from the pandemic. dozens of coven, 1900 cases, have been reported in the southern chinese province gang gong, a major manufacturing and exporting hub. the local government has imposed locked down to contain the outbreak. and that slowing activity in the regions container ports, one of the busiest ports is young chung and it's now only operating at 40 percent capacity. well, the world's largest shipping company mercy, says the disruption is worse than the blockage of this waves can out. in march. vessels are waiting more than 2 weeks to dark ships have been diverted to other ports near young chan that are also a capacity of factories in china are struggling to get their product to the rest of the world. through us, our orders have been increasing at a rate of about 20 percent, and now the ocean freight price is rising and the ships for overseas shipping is

very limited, making it impossible for us to deliver our products to our clients. industry analysts say shipping costs from china to europe have risen 300 percent since last year. and by 200 percent to the u. s. west coast, the congestion is leading to shortages of consumer goods, raw materials, a major u. s. retailer home depot, told american media its contract in its own container ship to import product. ah, that's not bringing our gas. joining us from london as guy platen, who's the secretary general of the international chamber of shipping in plymouth. stubborn cut, i'm petty, this lecturer and maritime economics at the university of plymouth, over in copenhagen, as christian beauty, who is a professor of international relations at the university of copenhagen. welcome to the program. thanks so much for speaking to us on insight story. the guy over to you 1st, how much more strain will this disruption from china put on the international shipping industry after? of course, having to deal with

a critical shortage of shipping containers due to the pandemic from last year. and that week long blockage. and this was can out earlier this year. well, i think our estimate says this, this could be at least 3 times worse than the incident with the ever given which block the suez canal for 6 days. and then we become to succeed series of this throughout the pandemic now is the ports of shut down. we've also had our crews heavily impacted with the coded 19 pandemic in the sense they haven't been able to change out when they should be changing out. so these are community things which are now having a real world impact on the supply chain, like with the morning for over a year now. and let me ask you, when you say 3 times worse, what exactly are you basing that assessments on basically the, the, the ship was the late, the 6 week you heard from the merced, could they ship a delayed moment, some weeks just be able to load and discharge, so you just to knock on effects was one ship blocking a canal. there was no turn to be around the south coast of africa. it did cause delays still causing some knock on delays. this clearly impacting the actual

loading cargoes. it's going to have a disproportionate impact when compared to even the given. so we'll see the impacts of this to in the coming months in the course of the summer, in the not having to move on move into the winter period. we can only see this exasperated. next, we can come up with a work solution about how to keep port and cruise site to deliver the goods growth . how uncharted are the water is no pun intended. here for the shipping industry, you, you're receiving that you had the mail, you know, it's like it's totally uncharted territory and we have to realize that logistics is the name of the game and so forth. but on site, the fact that was difficult to predict, you know, a year and a half ago, and we shouldn't forget like the problems we're having with the lack of microscopes that has slowed down the car production all over the globe. so it's kind of difficult to forecast what exactly is going to be vain park, but they think we're seeing that, you know, i mentioned early on the ever given events cause created,

especially here in the u. k. a lack of delay, a lack of the container ships been been delayed over and delivered over here in the u. k. so that's a huge look on effect in the logistic sector, which is still been felt over here at kristen. this all really shows, i guess, how much global supply chains rely on shipping. what do you think the implications are? are for global trade right now, and what does this disruption mean for the global economic recovery? quite honestly, you forget how important shipping actually is as a critical infrastructure and after the ever given incident is quite another reminder we need to pay more attention to what goes on, etc. and port looks like, obviously crucial in all of that. i think there's an urgent needs now to rethink of a how cove it impacts the shipping industry. and then also asked the question,

is that only a problem of the pandemic, or should be think broader and ask whether they're structural problems actually on how we think about the shipping industry, how we regulate it, and when how ports can be shot like this? yeah, we're going to get into these topics just a moment, in fact, but guy over to you, what will this actually do for shipping costs that are already quite high? but it's clearly, we've seen the, the scott high rights being charged the moment there's an under capacity in terms of ships, but there's no over capacity in terms of goods that need to be shipped as well. so i'm not just having a knock on effect. the pandemic, the locked down around the world as seen consumers order more. good says i stop going out so much. and this, then we send the congestion, the west coast to states. and so this is just going to exasperate the problems. but i agree with the last color as well. we need to, to look at solutions here if we could manage this because shipping have kept on delivering to out yet the impact on the cruise, the impact of the port work is,

is meant to be have to find a medium to long term solution. here. you know, we are starting to see the vaccinations rolled out amongst seafarers but still shoot restrictions on travel around the world and this is impacting on the ability to operate the ships as well. and christy, what does this actually mean for consumers themselves? well, certainly we don't have to worry about getting a christmas gift or, or similar. it's a might mean however, that there will be a shortage in supply in, in some goods. but that's in the end might be, you know, the worst thing on the planet, because it might be an invitation to shop locally and rethink what we actually need and take that also as an, as an opportunity. so to say and until the situation changes several of the, the port in china and growing gong is

a major shipping hub according to reports and accounts for about 24 percent of china's total exports. talk us through the, the role that this growing don't plays in the global supply chain and how significant it actually is. that's a significant port because as you said, is in the top 20 of the global ranking in terms of capacity. and that means that if a portal is the one we're talking to, that even delta area, and apparently the area is being affected and is be running at the moment, according to reports of 40 percent of capacity. that means that we're not going to have the cost that the consumer goods as we that we order, don't forget the china, the words factory. and most of the goods that are consuming are being produced over there in that specific region. so that means that a lot of the cars were expecting to cost it's going to be, is going to require more time to be receiving those goods. so at the end,

we really have to think about the resilience of the overall supply chain. and think about how the resilience can be enhanced with a virus investment that they needed in their over supply chain and stuff. or is it possible to drill down on which industries in particular are going to be most affected? and perhaps which countries most kind of an early day. so as you know, china is trading with all the county. so it's kind of difficult to say that's ex county is going to have morning, but the white country, but definitely in terms of global production, we're going to see i reduction in the goods availability. and of course is going to increase in long term. and in short and long terms, the price of the goods, as we've seen already with the ever given, we've seen a small spiking the goods that we're ac was shown here in the, in europe. and a guy over to you how i mean, you were mentioning this just a moment ago. let's look at actual businesses and discuss how they have to change their supply chains. what do you think they need to do?

i think it in the shipping will, is a resilient industry will move to the movement of the ships to where the goods are to be to be shipped. so it would not saying i take a shift towards where the supply chain happening. you know, we've heard the professor talking about shopping. we're located, we're not really seeing huge evidence about yet. so it's, it's too early to say whether the supply chains will be shifted. but, you know, we are still in the industry and we will get through this stuff for the business. you're worth mentioning, that's just a moment ago that businesses may have to rethink their, their supply chain. so they're not relying on getting stuff from just one place when logistics are broken. what do you think they need to do? i actually have seen that kind of reaction from the logistic sector. if we go back in february and march, we'll see that a lot of the boards in the west coast of the united states and they were having exactly a similar similar issue. they were running. they were having huge congestion. a lot

of vessels were doing outside the bars because there wasn't any better visibility. and what a lot of logistics companies have done. they put a lot of shipments, a lot of containers through the soonest can also they can reach to the east coast and what we see and you know, a fortune. but when we got the close of this is cannot with the ever given. and that was kind of a logistical nightmare for the us because both costs were kind of difficult to be served. so at the end of the day, we really have to think holistically, when we're talking about logistics and we really have to in the grade. model time port, especially because the critical node becomes big between the land and the sea and how that can be around smoothly. a christian guy was saying just a moment ago that the shipping industry is in fact resilience. i mean, do you agree with that assessment? how equipped to using the shipping sector is and responding to crisis in particularly over the past one and a half years or so we're, it's really been one crisis after the next. yes,

i obviously the system is under stress. but the same time the shipping industry is also famous to always make money under whatever circumstances. and there's a reason for that because quite obviously the needs the transport industry for the global economy. but then the same time, i think it's also an invite taishan to start thinking more about to see think more listings really about how the shipping industry is part of the global economy and quote, obviously there's also a dark side to the shipping industry and all the concerns and the climate discussion and the c o. 2 emissions. but then also the se serious of other shipping is asked us that often do not make it to the headlines. and here i'm thinking in particular about the fastest one in sri lanka or the spirit of malicious. so we really need to take

a 2nd look so to say at the shipping industry and see it as part of the ocean and approach it from that perspective. perspective and quite obviously ports are also crucial out of it. so i think there's an urgent need to think in broader global governance in terms of how we use the c and who controls shipping ports, but also ensures the security and safety of shipping. well, let me ask you, who is responsibility is that then what had fall to the government's, would it fall to the private companies from the shipping industry? who takes that on? well, for now, the shipping industry is one of the weakest regulated one. but obviously we have an international body of the international maritime organization. and this international body actually coordinates very,

very closely with the shipping industry apps too closely. and in that sense, if it be useful to ac governments, taking more concern over what goes on at c to take another look at the shipping industry. but then also to ask, what is the role of governments and can a government and as such as what is happening, but now just shuts down a port that we are crucially dependent on. so these are the kind of questions that needs to be asked. and of course, it raises the question whether the i m o s an instrument is enough for asking the question, and i think it could be urgently brought to the attention of the g 20 you, for instance, or other informal groups of states. guy, do you agree with that? do you think governments should be taken on this role? it in a larger way?

i think it takes a little bit of issue without the imo is, is not a standalone organization. it's a collection of governments coming together to regulate the industry and they are quite a highly regulated industry as, as a result of that with to various conventions and safety of life at c. 2 are inclusion and it's, and shipping is the safety record. it's been much improved over the years and of course is always at some tap on which we regret. and we learn the lessons from it. but it's, it's a question of governments also living up to their own obligations, you know, by all means use the, i'm i, when, and regulated and come together. but also what we see and this pandemic is governments just getting rid of their responsibilities, particularly recalls the crew members, they haven't recognize, safer as his key workers. they are happy to take the ships in, but then they put all sorts restrictions which is really exacerbated the, the problems within the industry. so yes, government need to take attention to shipping, but it needs to be a mystic approach, which looks after all the elements, not just safety,

but the welfare of cruise, and also coming together to get good regulation to get chipping site and to reduce our environmental footprint so i think there's the political well to do that guy. i mean, will this pandemic, it has been sort of an infection point a, an opportunity to reflect on the shipping industry and the way it works. or is it going to go back to business as usual? i'd like to think people have a much more awareness of the shipping. it's really interesting. we've been making a big play about the well for our cruise and shipping keeping garner this last year . but it wasn't total. a container ship got stuck in the sewage canal for 6 days that the world suddenly realized the fragility of the supply chains and paid some more attention shipping. it's absolutely vital for lessons happy love the pandemic and non terms of environmental stuff. we see a lot of rhetoric from, from senior political figures that also needs to be translated into good regulation

and a clear direction of travel so that we can invest in the ships of the future with some certainty, stop roast. can you weigh in on this debate? where do you think trade policy and regulation needs to head to next and who takes the responsibility for it? i think the liquor, what's the peevish to are the zip on said and i will say that is a part of a more holistic approach that we'll have to take mr. city, for example. specifically, the chief executive of the u. s. national retail federation has dropped letter to president biden, 2 days ago to ask about action, because the port congestion is adding days and weeks in their supply chain. and there's invent restart shortages in the us and, and that's affecting their ability to business ability to serve the customer. so they realize, but you know, like it's not only one piece of the puzzle, you know, everybody has to come and sit on the table policy regulators, you know,

supers shipping companies, port operators and everybody has to come sit in the same table and talk about the problems of the shipping and they are over logistic sector is facing. because if we don't build them today, we're going to face them again and again again tomorrow. here's the thing that start 1st. i mean air speaking about what governments to say now the official line out of china by the chinese commerce ministry spokesman has said, that's going dawn. of course, in the south of china, the resurgence of cobra. 1900 cases yet, hadn't yet yet led to a pronounced impact on foreign trade. what do you make of that statement? is that just a p r spin? to be honest, there are different regions in china and each of them they're kind of reacting differently. so i can't really comment because i haven't seen the statement, but what i would say that, you know, like, and then it is here and here for good as it seems. and as you said earlier on, is like crew in the shipping sector has been tires because it was difficult to make

changes, you know, with the current situation vaccination is going really slow with the crew over there in sipping. so we really have to take a holistic approach and we shouldn't really, you know, postpone the decisions or say over someone else problem and not mine. we really have to take actions today in order to group resilience in the, in the logistic sector. because if we don't do that, we're going to suffer a lot of times a lot of course and a lot of delays, which i'm sure that the customers are not willing to pay. can you just elaborate a little bit more on? i mean, you keep referring to the term holistic approach. what do you mean exactly by that? by the holistic approach is that we should try to establish connections, as we said earlier on between the maritime sector, seeps with the, the pores about how they can interchange data. nowadays, we're talking about the delay. zation is shipping and shipping is one of the

sectors of this really liking behind. and in order to apply a holistic approach, we really have to exchange beta. we're living in 2021. everybody wants to know exactly what are the categories under what kind of conditions. you know, everybody sticking with smartphones. 247. so we really have to increase visibility in the overall supply chain. and the only way to do it is by exchanging informational groups either. so really the port has to build a software or a system that's going to talk with the sips and soups. got to be able to implement that kind of system. so we can have a smooth transition of beta. so for he says when the container arrives and dog loaded in the container ship so so we have an exchange of information. one is going to be arriving at what time is good to do part what has been placed at the moment and all that kind of stuff. and that, of course, if it needs some kind of time to put a can holistic approach dyersburg or any sort of more plants, more investments into the industry to get more ships and to upgrade ports

themselves. i think is a huge plans to, to, to invest in the industry. obviously, we have an uncertain future in terms of the colonization. we need to transition to 0 carpet joules, which will cause trillions of dollars investment to, to make that happen. but i think the one thing that has accelerated and a good thing of the lossy is digitalization. we had the last speaker as well. talk a little bit about that, but that i sees great strides being taken pulled of that and a lot of work being in put into to agree common standards and terms of electronic paperwork and all sorts of bills of lading and things like that to smooth might be the process much more efficient and if you've got a new patient process, you've got efficient ports that's going to lead to, to more efficient shipping as well. christian, would you like to respond to what guy was just saying. and also you mentioned just a short while ago, the issue of climate change in particular does the shipping industry need more regulation and transparency when it comes to this issue of climate change?

yes, i think the cor point here is that we need to get out of the mindset where everything is driven by efficiency concerns. that is partially where the current stress of the shipping industry comes from. and wow, why and how everything has been cut become driven by efficiency. concern has much to do with governments around the world, turning a blind eye on the sea. and that unfortunately has produced, produced a global shipping economy where not enough attention is paid to other concerns and that concerns the environment. we have been talking about cru stress and true fatigue before i was mentioning safety. and that both oil spills but also the substantial amount of containers that get lost every every year at sea,

which has a tremendous environmental impact as well. and here, be clearly not doing enough. and part of the reason of that if it's clearly that there has been this culture of secrecy around shipping much more than in other industries. just think about how much we're talking today about the global tech industry and the internet and how much we are having a regulatory debate. they're public regulatory the bait. and now compare that to the crucial world of shipping. the infrastructure that is perhaps even more important than the internet. i think we need you to pay more attention. was a public regulatory debate. i lost where to you. i would agree we need to

put into focus how important shipping is. and we need to have that debate about the future shipping about trade and how it's all going to work and job together. so on that i mean and complete agreement it's, it's we, you know, we need more focus so that we can have that debate. and we can move forward into a and d, carbonite industry and ensure that we'll take it's flying because 90 percent of everything travels by sea and the app. so in tech, go to the overall supply chain. i've been saying thank you so much. i will have to leave it there. thanks to all my gas guy. platen stopper us cut. i'm pretty this and christian beauty. thanks for joining us. thank you for watching. you can see the program again any time by visiting our website al jazeera dot com for further discussion. you can go to our facebook page at facebook dot com forward slash ha and sy story. and you can join the conversation on twitter. handle is a inside story, myself and whole team right here in the how, thanks for watching. good bye. for now. the

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