DP World was hit with a cyberattack on that brought their operations to a complete stop.
👉 Background: DP World is the Dubai-headquartered logistics company, and the biggest port operator in Australia. They look after 40% of Australia's container shipments through Sydney, Melbourne, Brisbane, and Fremantle.
👉 What happened: Late last week, DP World was hit with a cyberattack on that brought their operations to a complete stop. That means up to 30,000 shipping containers were stuck at their ports in Australia, and imports and exports were frozen.
👉 What else: Now, DP World has restarted their operations, especially for sensitive products like medical supplies, but at a lower capacity. And, this supply shock has got some people getting twitchy about inflation increasing further.
💡A supply shock happens when there's a sudden increase or decrease in the supply of an important product or service, and this can have major economic flow-on effects.
💡If less products hit the shelves, the prices of those goods tend to go up. And, if the price of goods go up, then it may increase the inflation number, which could encourage the RBA to consider another interest rate rise in December.
💡This is not the first time a supply shock has impacted prices; Ever Given, the container ship, was stuck in the Suez Canal for 6 days in 2021, and it blocked 12% of global trade.
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