- UK Finance Minister Rishi Sunak urges G7 nations to work together to tackle the supply chain disruption.
- The Chancellor is also likely to call on G7 finance ministers to use IMF issued Special Drawing Rights (SDR) to boost support for vulnerable nations.
UK’s Finance Minister Rishi Sunak on Wednesday called for global action to deal with the supply chain disruption challenge. The Chancellor of Exchequer urged the Group of Seven rich nations to work more closely against the supply chain bottlenecks, which has negatively affected the global economic recovery from the COVID-19 pandemic.
Rishi Sunak is meeting G7 and G20 finance ministers in Washington this week and will encourage them to work together to address the supply chain crisis and making it more resilient in future.
Earlier, the International Monetary Fund (IMF) has also warned that the global supply chain crises will lead to a rise in inflation and may delay economic recovery from the pandemic.
The UK has additionally been hit with the post-Brexit trade barriers, strict immigration rules and shortage of HGV drivers that are affecting the business of supermarkets and petrol stations amid warnings that there may be a crisis of salt gritter drivers this winter. Natural gas and energy prices are skyrocketing across Europe, which resulted in a shortage of carbon dioxide used to daze farm animals before butcher, and British petrol stations are running dry of fuel.
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Related read: How can CO2 supply deal benefit UK businesses?
The Chancellor, who is on his first official visit to the United States, is also likely to call on G7 finance ministers to use international monetary fund (IMF) issued Special Drawing Rights (SDR), which is a type of international reserve asset, to boost support for vulnerable nations and would encourage other rich nations to redirect their share in the IMF’s new $650 billion grant of its internal currency to poorer countries to boost response to climate change, healthcare and support sustainable economic growth.
In view of this development, let us look at two of the UK logistics stocks and how they are performing on the stock market.
Xpediator Plc (LON: XPD)
Xpediator Plc is a leading international freight management business that offers logistics, freight forwarding and transport support services across the UK and Europe.
The company’s H1 2021 revenue rose by 27.10% to £126.6 million from £99.6 million in H1 2020, and its adjusted profit before tax rose by 71.42% to £3.6 million from £2.1 million in H1 2020.
Xpediator Plc’s shares were trading flat at GBX 58.75 as of 10:12 AM GMT+1 on 13 October 2021. The company’s current market capitalization stands at £83.24 million, and it has given a return of 118.48% in 1 year. Its YTD returns stand at 73%.
Also read: Where does UK get its gas supply from?
Clipper Logistics Plc (LON: CLG)
Clipper Logistics Plc is a retail logistics business that offers e-fulfillment, logistics and returns management solutions to the retail sector.
The company’s revenue for the year ended 30 April 2021 rose by 39.1% to £696.2 million from £500.7 million in the same period a year ago. Its profit after tax rose by 33.8% to £21.7 million from £16.2 million in the same period a year ago.
Clipper Logistics Plc’s shares were trading at GBX 682.00, up by 0.29% as of 10:14 AM GMT+1 on 13 October 2021. The company’s current market capitalization stands at £695.67 million, and it has given a return of 31.85% in 1 year. Its YTD returns stand at 18.99%.