than a century ago. breaking news out of hong kong. five senior executives at a newspaper were arrested. effective colluding with a foreign country. joe biden and vladimir putin have held what they called a constructive meeting. the resume talks.

washington and moscow will return ambassadors to each other's capital's? . >> president putin and i share a unique responsibility. a relationship that have to be stable and predictable. >> as for the overall assessment, i believe there has been no hostility. we have buried assessments of a number of issues but i believe both sides expressed willingness to understand. the talks were quite constructive. >> the first crew to be sent to china's space station have ordered the rocket. the mission will take the three men in a floating lab. more missions are planned. a car bomb inside a military

base has injured 36 people, leaving three people in a critical position. the defense minister is blaming the largest armed group. france has eased several of its restrictions after a drop in covid. it is no longer mandatory to wear masks outdoors, and the nightly curfew is going to be lifted. those are the headlines. goodbye. host: global shipping is in crisis causing delivery delays.

could this derail economic recovery? this is inside story. hello and welcome to the program. a covid-19 outbreak at one of the worlds busiest ports in china having a ripple effect. businesses around the world are being warned of delivery delays until the end of the year, that has led to concerns about economic every. dozens of covid-19 cases have been read ordered in china, a manufacturing and exporting hub. a local government has imposed lockdowns to contain the outbreak, and that is slowing activity in container ports. one of the busiest ports is now on the operating at 40%

capacity. the world's largest shipping company said the disruption is worse than the blockage of the suez canal in march. vessels are waiting more than two weeks to dock. ships have been diverged to other parts? factories in china are struggling to get there product to the rest of the world. >> our orders have been increasing at a rate of 20%, but now the price is rising and ships is limited, making it is impossible. host: industry analysts say shipping costs from china have risen 300% since last year and by 200% to the u.s. west coast. the congestion is leading to shortages. a major u.s. retailer told american media it has contracted its own container ship to import products.

let's bring in our guests. from london, the secretary-general of the international chamber of shipping. a lecturer. welcome to the program. how much more strain will this disruption from china put on the international shipping industry? that weeklong blockage earlier this year? >> this could be at least three times worse. we are going through a series of this throughout the pandemic. ports are shut down, crews heavily impacted with the covid-19 pandemic. they have not been able to change out what they should be changing out.

having a real-world impact on the supply chain. host: when you say three times worse, what are you basing that on? >> you heard they are able to load and discharge. there was an alternative around the south first, did cause some delays. this is impacting the loading of cargoes and is going to have a disproportionate impact when compared. he will see the impacts of this in the coming months, as the summer moves on, we can only see this being exasperated unless we can come up with a solution. host: how uncharted are the waters?

>> hitting the head on the nail. totally uncharted territory. we have to realize that logistics is the name of the game. that is outside of the fact that it is difficult to predict. we should not forget, the problems we are having. it is difficult to forecast what exactly is the impact. we are seeing a lack of container ships. that had a huge effect on the logistics which is still being felt. ? host: this all shows how much global supply chains rely on shipping. what do you think the implications are? what does the disruption mean?

>> we often forget how important shipping actually is as critical infrastructure, and after any given incident it's another reminder we need to pay more attention to what goes on at sea, and ports are crucial in all of that. i think there is an urgent need to rethink how covid impacts the shipping industry, and asked the question, is that a problem of the pandemic? or should we think brother and asked whether there are structural problems. host: we're going to get into these topics. what will this actually do for shipping costs that already quite high? >> we have seen it at the

moment. there is an under capacity in terms of ships but overcapacity in terms of goods, that is having a knocked down effect. the lockdowns have seen consumers order more goods. this is going to exasperate the problems. we need to look at solutions, because shipping has kept on delivering, let the impacts -- we have to find a longer-term solution. we are starting to see vaccinations, but still huge restrictions on travel. this is impacting that as well. host: what does this mean for consumers themselves? >> we don't have to worry about getting christmas gifts or

similar. it might mean that there will be a shortage in some goods, but that in the end might not be the worst thing on the planet, it might be an invitation to shop locally and rethink what we actually need, take that as an opportunity to say until the situation changes. host: the pork in china is a major shipping hub, accounts for about 24% of china's total exports. talk us through the role displays in the global supply chain. >> as you said, top 20 of court for capacity. that means if the court is looking to deliver in an area

that has been affected, 40% of the bed capacity, it means we are not going to have the consumer goods that we ordered. most of the goods have been produced over there. a lot of the goods we are expecting to have, where going to require more time to receive those goods. we need to think about the resilience of the supply chain and how that can be enhanced. host: is it possible to drill down on which industries in particular are going to be most affected? >> as you know, china is trading with countries so it is difficult. definitely in terms of global

production, where go to see a reduction in goods, and that is going to increase in the short and long-term the price of the goods. as we have seen already. the goods we have consumed in europe. host: over to you. you were just mentioning, 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's a resilient industry. we will move the ships to where the goods are. we are not seeing a particular ship to where the supply chains are happening. we heard the professor talking about shopping more locally. we are not seeing huge evidence of that yet. it is too early to say whether supply chains will be shifted. we are a resilient industry and

we will get through this. host: businesses may have to rethink their supply chains so they are not reliant on getting stuff from just one place, when logistics are broken. what do you think they need to do? >> we have seen that kind of reaction. if we go back in february and march, we see a lot of the ports in the western having similar issues. congestion, vessels were queuing outside of the ports. logistics companies have put a lot of containers through the suez canal so they can reach the east coast. what we have seen, the closure of the suez canal. that was a logistical nightmare because it was difficult to be served. at the end of the day, we need

to think politically -- logistically and integrate maritime ports,. critical link between the land and the state. host: guy was saying just a moment ago that the shipping industry is resilient. do you agree with that assessment? how quick do you think the shipping sector is in responding to crises, particular over the past 1.5 years or so, what it has been one crisis after the next? >> the system is under stress, but at the same time the shipping industry always makes money under circumstances. the reason for that is quite obviously we need to transport industry for the global economy. at the same time, i think it's an invitation to start thinking more holistically about how the shipping industry is part of the

global economy, and quite obviously, there is also a downside to the shipping industry. climate and co2 emissions. other shipping disasters that often do not make it to the headlines. here i am thinking about disasters in sri lanka. or the oil spills. we need to take a second look at the shipping industry and see it as part of the ocean, and approach it from that perspective, and quite obviously, ports are also crucial. i think there is an urgent need to think in broader global government terms of how we use the sea that ensures the safety

of shipping. host: it was responsibility is that? what if all to the governments? to the private companies? to take that on? >> the shipping industry is one of the weakest regulated. we have an international body, international maritime organization. this international body coordinates very closely with the shipping industry. perhaps too closely. in that sense, it will be useful to see governments taking more concern. taking another look at the industry. also to ask what is the role of governments. can a government just shut down

a port that we are crucially dependent on? these are the kinds of questions that need to be asked. and of course, it raises the question whether it is enough for asking the question. i think it could be urgently brought to the attention to groups of states. host: do you agree with that? >> the imo is not a standalone organization, it's a collection of government. they are a highly regulated industry as a result of that. shipping -- the safety record has been much improved over the years.

it's a question of governments also living up to their own obligations. using the imo and regulating and coming together. we have seen governments getting rid of their responsibilities, particular with regards to crewmembers. they have not recognized key workers. happy shifted also to restrictions. governments need to take attention to shipping, but it needs to be a holistic approach that looks after all of the elements. coming together to get good regulation. host: [indiscernible] has it been an infection point? an opportunity to reflect? or is it going to go back to business as usual? >> it's interesting.

we have been making a big play but it wasn't until the container ship got stuck that the world realized the fragility of the supply chains. shipping is absolutely vital. in terms of environmental, we see a lot of rhetoric. that needs to be translated into good regulation so we could invest in the ships of the future. host: where do you think trade policy and regulation needs to head to next? who takes the responsibility for it? >> i will echo what the previous two said. part of a more holistic approach.

the chief executive of the u.s. national retail federation asked about action. days and weeks in their supply chain, shortages in the u.s.. that is affecting their ability. they realized that is not only one piece of the puzzle. everybody has to come and sit on the table. policy, regulators. shipping companies. port operators. everyone has to come sit on the same table, logistics, because if we don't deal with them today, we're going to face them tomorrow. host: here is the thing. you're speaking about what governments should say. the official line out of china has said that the south of china

resurgence of covid-19 cases had not yet led to a pronounced impact on foreign trade. what do you make of that statement, is that just a pr spin? >> to be honest there are different regions in china and each of reacting differently. i have not seen the statement,. the pandemic is here for good. the shipping sector has been tired. vaccination is going really slow. we have to take a holistic approach, postpone decisions. we have to take action today in order to prove resilience. because if we don't, we're are going to suffer long-term, a lot

of costs and delays, which i'm sure the customers are not willing to pay. host: can you elaborate a little more? you referred to the holistic approach. what do you mean? ? exactly by that >> should try to establish connections between the maritime sector. talk to the ports about how they can enter data. talking about digitalization of shipping, they are lagging behind. in order to apply a holistic approach, we are living in 2021. everybody wants to know exactly where the cargo is. everybody is checking on their smartphones. we have to increase the ability, and the only way to do that is exchanging information. heat a system and chips have to

be able to implement the system so we can have a smooth transition of data. loaded in the containers. so we have an exchange of information, when, at what time is it going to depart. that need some time. host: there any more plans or investments to get more ships into upgrade ports themselves? >> it's huge. we have an uncertain pitcher in terms of carbon, we have to transition which will cost trillions of dollars. i think the one thing that has accelerated its digitalization. i see great strides being taken. a lot of work to agree to common

standards. if you have an inefficient process, that will lead to more inefficient shipping. host: would you like to respond to this? you mentioned a short while ago the issue of climate change. does the shipping industry need more regulation and transparency? >> i think the core point is we need to get out of this mindset where everything is driven by deficiency concerns. partly where the current stress. driven by efficiency has much to do with.

turning a blind eye. that has produced a shipping economy were not enough attention is paid to other concerns. environment. crew fatigue. oil spills. containers to get lost. we are clearly not doing enough. there have been counts of secrecy around shipping much more than in other industries. think about how much we are talking about the global tech

industry, and internet. how much per having a regulatory debate. now compare that to shipping, infrastructure. there is an urgent need to pay more attention. host: last word? >> i would agree. put into focus how important shipping is and we need to have that debate about the future of shipping. i am in complete agreement. we need more focus so we can move forward. ensure world trade -- 90% of everything travel spicy. host: thank you so much.

we will have to leave it there. thank you to my guests. extra dryas. thank you for watching. you can see the programming on our website. facebook and twitter. thanks for watching.

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