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Floods in Europe and China threatened Black Friday

Experts expect supply problems to worsen amid disasters at a key transport hub in the Middle Kingdom.
Floods in Europe and China threatened Black Friday

Problems may threaten black Friday and the holiday sales season with the supply of goods amid the devastating floods that hit Western Europe and the Chinese province of Henan. Experts expect supply problems to worsen amid disasters at a critical hub of the Celestial Empire. 

As reported by CNBC, streams of water hit the industrial areas of the province, damaging not only the rail hubs used to deliver goods but also damaging the factories and warehouses themselves, which are used in the international supply chain. 

Market participants are already expressing concern about the situation, noting that the region's crisis could negatively affect the supply of goods to Western markets. It is said that retailers may face severe shortages in consumer electronics, furniture, clothing, and other vital products. 

It is expected that delays in global shipments caused by the floods in Europe and China may reach weeks and months. Previously, market participants have already noted difficulties in logistics caused by a shortage of shipping containers after the blockage of the Suez Canal, as well as amid difficulties with the pandemic. 

It has been noted that the number of deals in the run-up to Black Friday will reduce significantly, which will lead to a reduction in the value of discounts for customers, as well as higher prices for certain groups of goods, including electronics and clothing. An additional negative factor is a constant rise in the cost of logistics services. 

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