Equity Analysis /
Egypt

Egypt logistics: On the ground update

  • The global COVID-19 pandemic has had, and will continue to have, significant implications for businesses

  • In response to the surge in demand for food supplies, medical equipment, governments have imposed controls on exports

  • Restrictions on movements and factories shutting down lead to a slowdown in demand and supply

Mariam Wael
Mariam Wael

Associate

Follow
Zeyad Ahmed
Zeyad Ahmed

Equity Research Analyst

Follow
Al Ahly Pharos Securities Brokerage
6 April 2020

Global Trade Hammered on both the demand and supply sides

  • The global COVID-19 pandemic has had, and will continue to have, significant implications for businesses involved in and related to global trade activities.
  • In response to the massive surge in demand for food supplies, raw materials, medical equipment and supplies, several governments -including Egypt- have imposed export controls on a variety of basic food commodities and health/medical products needed to fight the COVID-19 pandemic.
  • Restrictions on movements and factories shutting down to prevent the spread of the virus, will negatively lead to a slowdown in demand and supply; pressuring cargo/containers volumes.
  • Large-scale quarantines and travel restrictions have already led to a precipitous fall in consumer and business spending.
  • Curfew imposed higher costs on importers and exporters, since shipping providers charged higher freight/transportation costs, given longer waiting time and higher storage costs.