Putin's war may upend global supply chains

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Shortages of toilet paper and food. Congested ports. Monthslong waits for refrigerators and new cars. Soaring inflation. These are a few of the consequences of the COVID-19 pandemic’s massive impact on global supply chains – those intricate networks of miners, producers, shippers and distributors that drive the modern economy.

But if you ask supply chain expert Tinglong Dai, you ain’t seen nothing yet. Russia’s invasion of Ukraine will likely create even bigger disruptions.

In the short term, he explains, the war and resulting sanctions are causing energy prices to skyrocket and prompting fears of famine in Africa. But in the long term, he writes that supply chains may have to fundamentally change as a new Iron Curtain falls between the West and Russia and its allies, like China, forcing companies to rethink how they source their stuff.

Also today:

Bryan Keogh

Senior Editor, Economy + Business

Supply chains were already in disarray thanks to overcongested ports, as in Los Angeles. AP Photo/Damian Dovarganes

Ukraine war and anti-Russia sanctions on top of COVID-19 mean even worse trouble lies ahead for global supply chains

Tinglong Dai, Johns Hopkins University

In the short term, the war is causing energy prices to soar and prompting fears of famine in some countries. In the long term, it could remake the modern global supply chain.

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