Disruption in global chains may extend to 2023

The supply chain crisis threatening the world economy is in danger of lasting at least another year unless governments step in to help alleviate shortages, warned one of the world’s largest shipping companies.

Jeremy Nixon, CEO of Ocean Network Express (ONE), which transports more than 6% of all global containerized freight, called on governments to boost investments in port, rail, warehouse, and road capacity.

“There needs to be some support from governments in this sphere to maybe transfer people from some parts of the economy where demand is not so strong to more critical parts of the economy where demand is very strong and important to global supply chains”, he said.

While US President Joe Biden has been pushing rail freight companies, trucking groups, and ports to increase their own capacity and productivity in order to meet growing demand, Nixon said the US is an area of ​​particular concern.

Negotiations set for May next year between terminal operators at US West Coast container ports – the gateway for goods shipped from Asia – and workers are likely to prove to be a source of further disruption to services, said Nixon.

“I don’t see any immediate improvement at the moment,” said Nixon. “If we have severe congestion in July, August, and September 2022 in North America, it could perhaps last into late 2022 and early 2023.”

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/mundo/noticia/2021/10/26/ruptura-nas-cadeias-globais-pode-se-estender-ate-2023.ghtml

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