Alan Keir, Group General Manager, Global Co-head HSBC Commercial Banking, comments: ‘The volcanic ash which has had such a debilitating effect on commercial air travel has also taken its toll on businesses across the continent.

‘There has been a significant impact on business supply chains – the grounded stock has meant that the pace of trade has slowed considerably.

‘It is vitally important to ensure that supplies are transported efficiently so that countries that have just emerged from recession are not thrown back into difficulties due the delay in receiving crucial raw materials.

‘We are working even more closely with our customers to understand how their supply chains are being affected so we can offer the right level of support and assistance to ensure that any disruption is minimised and the long term impacts are limited.’

Stuart Nivison, Head of Trade and Supply Chain at HSBC Commercial Banking, adds: ‘This affects even sea freight. Normally the title documents are processed and sent by courier while the ship is traveling. The disruption means companies face the risk of goods arriving before the paperwork with delays and expensive port demurrage charges as a result.’

Nivison provides the following tips for businesses affected by the disruption:
o Speak with your bank. Let them know the impact on your cash-flow and seek their advice. Banks active in trade know how other companies are handling similar situations and they can provide practical solutions like shipping guarantees to ensure that goods are released quickly on arrival.
o Contact your buyers quickly to renegotiate contracts or agree extensions to safeguard receipt of payments. 
o Check your insurance cover to see if it compensates for any additional costs you or your business have incurred. 
o The most important thing is to contact your trading and banking partners at an early stage to resolve any potential issues. After all, it’s likely this has affected them too.