There were increased trade risks with Bangladesh, Pakistan, Egypt, Finland.

Bangladesh: Challenges Getting Letters of Credit

According to a recent Bangladesh Daily Star report, the letter of credit start-up problem poses a severe threat to Bangladeshi businesses. According to statistics from the Bangladesh Central Bank, the number of letters of credit issued and settled decreased by 14% and 9%, respectively, between July and December 2022.

Some businesses have stated that their output has been affected. They will have to work if they need raw materials, tools, and equipment for making things.

As early as November last year, some banks put off paying for goods covered by import letters of credit or refused to pay.

According to the foreign exchange rules of the Central Bank of Bangladesh, bank letters of credit are usually used to send money internationally for imports and sales.

Twenty thousand vessels are jammed into Pakistan's ports.

On January 23, the central bank of Pakistan said that exporters could get paid after 180 days or longer.

According to Pakistan's central bank, many ships at the Karachi port are full of goods from other countries. As a result, local consumers need help obtaining dollars from banks to make purchases. Khurram Ijaz, vice president of the Union of Pakistan Chambers of Trade and Industry, thinks about

Twenty thousand tons of cargo have been stuck in the harbor.

The Pakistan Ship Agencies Association (PSAA) has warned the State Bank of Pakistan and other government officials that shipping companies may stop doing business in Pakistan because the situation is worsening quickly.

A spokesman for Pakistan's Ministry of Maritime Affairs said the national budget now pays for demurrage and custody costs. As a result, many trading firms might go bankrupt, according to sources within the industry.

Over the week ending February 17, Pakistan's central bank held $3.258 billion in foreign currency assets, totaling $8.726 billion. Pakistan has an unstable economy and a problem with its balance of payments. It only has enough foreign currency assets to pay for imports for three weeks.

Nearly $10 billion in products were stuck in Egyptian ports.

After 2023 began, Egypt's native currency, the Egyptian pound, collapsed. On January 11, the Egyptian pound plunged more than 16% against the dollar, a record low. The total devaluation will be close to 20% by 2023.

About 80% of the wheat Egypt imports comes from Russia and Ukraine. In February 2022, a conflict between Russia and Ukraine forced the two nations to reduce wheat imports drastically. Egypt is one of the countries being hurt the most by rising prices for wheat and energy.

Since the US dollar's value has been increasing, the Egyptian government has been messing with its foreign exchange assets a lot, causing the country to have its worst shortage of foreign exchange in five years. Many businesses relying on imports are having problems because the country's harbors still hold $9.5 billion of products.

Due to a series of natural disasters, Egypt has asked the International Monetary Fund (IMF) for help for the fourth time in the past six years.

Finland: All ports are closed, and international commerce is nonexistent.

After talks between Finnish port employees and trucks broke down on February 15, the walkout reportedly resulted in a total closure of Finnish harbors, halting foreign commerce and increasing pressure on the economy, which was already negatively impacted by the Russia-Ukraine conflict.

As of February 15, the Finnish transport workers' union AKT is organizing a walkout that will affect all Finnish harbors and facilities. Maersk Line has posted a notification to inform clients.

Maersk has stopped all ship activities, gate moves, and cargo processing in Finnish ports until further notice.

In 2022, the Finnish Transport Workers' Union (Autoja Kjetusala Tyontekijaliitto, or AKT) said that the biggest problems in Felixstowe and Liverpool were wages and working conditions.

Finnish shippers reported 9% inflation in December.

Even though the company tried hard, it needed to match the most recent offer's salary and other job requirements.

The Finnish Port Managers Association estimates that international trade will be affected by more than $300 million each day of the walkout.

Risks are also associated with doing business with Argentina, Lebanon, and other countries.