Supply Chain Chaos To Continue Into Mid 2022
1-minute read
Supply chain chaos will likely persist through to the middle of next year, Jim Snabe, chairman of German conglomerate Siemens and Danish shipping firm Maersk said in an interview with CNBC this week.
“The trade of good has actually gone up, not down, ” Snabe said, adding that he believes this is because people don’t spend as much on services anymore. “We don’t go to restaurants so much, we don’t go to the cinema, we don’t travel. People are home and they want to improve their homes”.
One of the main issues, Snabe said, is there aren’t enough truck drivers to pick up containers from the ports.
At the end of last week, Maersk had 84 vessels wait for an average of 18 days in front of ports, Mr Snabe said. “That takes capacity out of the shipping industry because they are lying there idle, ” he said.
Schedule reliability among the global container lines remains at the bottom of the range with only one-third of vessels operating on schedule.
“You have higher demand and lower capacity, not because we don’t have enough vessels, but because they are not sailing because of congestion,” Mr Snabe added.
“We have to balance that out. We think this will happen somewhere mid-next year, but maybe not before”.
Source: The New Zealand Shipping Gazette
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