At present, the situation in Myanmar is still relatively tense. Since the political turmoil in Myanmar, workers from all walks of life, some bank employees, medical staff, civil servants, etc. have held strikes and demonstrations. At the same time, the domestic transportation industry, logistics industry, banking industry, commercial activities, COVID-19 vaccination work, etc. have all been affected to varying degrees.
Due to large-scale protests in Myanmar, shipping companies have suspended operations at Myanmar ports, which has suppressed physical trade activities, caused container transportation delays, and sharp imports reduce. Street protests have put pressure on the logistics industry, with container trucks halted and container cargo stranded at ports.
Pakistani container expert Mohammad Bilal Khan said: Since February 20, CMA CGM has suspended the acceptance of all new orders for freight entering Myanmar. From March 8, All employees are working from home until further notice. German shipping company Hapag-Lloyd has also suspended import bookings from Myanmar until further notice, although Yangon-based Hapag-Lloyd is accepting export orders. Maersk made a similar announcement to suspend all vessel operations in Myanmar and has not yet provided an update on whether to extend this period.
Logistics challenges “Sales continue to be weak. Due to the protests, Myanmar’s shipping ports do not have enough labor to transport containers to their destinations,” a Thai businessman said. Some regional trading companies have taken a conservative approach, either canceling trade or delaying container shipments to Myanmar. A Hong Kong trader said the company had rescheduled shipments to May but was still unsure about the status of container unloading operations. “Transportation from Thailand to Myanmar has been hampered by service disruptions. Most trade is carried out by trucks,” a Thai source said. Although trucks are available, trade is severely affected as roads are blocked and banks are closed.
The current situation has also brought many commercial activities to a standstill. The WFP said: “Myanmar’s rising food and fuel prices are compounded by the near-paralysis of the banking sector, slowdown in remittances and widespread constraints on cash supplies.” Some businessmen even said that at present, the vast majority of businessmen have suspended operations. business activities and remain silent. This change may offset Myanmar’s economic gains over the past decade.
Import impact Myanmar’s turmoil comes at a time when Asia’s container markets face trade disruptions due to container shortages and severe port congestion. Container rates on intra-Asia trade routes have soared nearly fourfold since November, market sources said, with shippers also shifting from sea to intermodal transport by truck and rail to improve reliability and ensure delivery. Traders said the closure of Myanmar’s banks has also caused difficulties, especially when it comes to payments in U.S. dollars. “Banks are closed and it is difficult for buyers and traders to transact. We are facing difficulties transacting with Myanmar buyers,” said a Singapore-based trader.
Myanmar’s domestic mobile communication operators received a notice to shut down the mobile communication network indefinitely starting from March 15, and mobile phones will only retain call and text messaging functions. Currently, Myanmar’s fiber optic communication network (FTTH) has not been shut down, and users can still access the Internet through the WIFI function of the fiber optic network. All private banks in Yangon, Myanmar’s largest city, are closed and have completely stopped large-value transfers. The processing of customs duties and overseas remittances have also been suspended.
Since February 1, most banks in Myanmar have been closed, disrupting the capital flow of enterprises. Many factories and enterprises have insufficient cash flow, some foreign trade orders cannot be settled, and cash cannot be obtained after exporting goods. Local settlement and import and export businesses will be greatly affected. A garment factory owner said the garment industry, which plays an important role in Myanmar’s economy, has been hit hard as foreign companies suspended orders. Data shows that Myanmar’s garment industry has created nearly 500,000 jobs in Myanmar. Now, goods are piling up at ports because there aren’t enough customs officers to clear them.
Many multinational companies are also under pressure. Some multinational companies have come under huge pressure from public opinion, and some multinational companies have been directly affected. A few days ago, many foreign-funded enterprises and joint ventures in Yangon Industrial Park were maliciously smashed and set on fire.
Myanmar business analyst Peter Mumford said that if Myanmar falls into chaos, neighboring Thailand and regional supply chains will be affected. The impact of the changes on the banking and logistics industries is huge. Many factories are unable to pay wages to suppliers and employees, which will further worsen Myanmar’s economy.
In the 2019-2020 fiscal year, China became Myanmar’s largest trading partner. Economic cooperation between China and Myanmar involves many aspects, including industrial transfer, deep-water ports, hydropower plants, oil and gas pipelines, oil and gas exploration and development, minerals, gems, timber, etc. The political situation is chaotic, and some Chinese businessmen who have business dealings with Myanmar are nowFaced with the embarrassing situation of losing contact with partners, interrupting trade, and not daring to ship goods. Capital from some countries has begun to withdraw. Myanmar, a country that relies heavily on foreign investment, will suffer from a crisis in its future development. </p
