The operator of one of the busiest ports in the world has suggested that a global supply chain bottleneck will last for about two years.
Talk to Bloomberg NewsSultan Ahmed Vinsleyem, chairman and CEO of DP World in Dubai, said the bottleneck is expected to continue until 2023. He warned that this problem would increase the cost of shipping goods.
“The global supply chain was at stake at the beginning of the pandemic,” Sreyem told the press, adding that “fares will continue to rise.” “Probably in 2023, there will be mitigation,” he continued.
Some analysts and other port operators say the supply chain is struggling to keep up with demand and deal with the labor disruptions caused by the COVID-19 pandemic, blockade and quarantine.
Sultan’s DP World is one of the world’s largest seaport and cargo terminal operators with hubs in Africa, India, Russia, Europe and the Americas.
“Even now, every time I see a COVID incident in China, they close the port,” he said. “Many manufacturers around the world are three years behind because parts are not available from China. They are taking a very aggressive approach.”
Suggesting a departure from dependence on the Chinese market and perhaps the administration’s controversial Belt and Road Initiative, Sreyem said, “India has great potential, which is reflected in DP World’s investment.” Stated. Africa continues to grow, including Southeast Asia, mainly Indonesia. “
Meanwhile, AP Moller-Maersk, the world’s largest shipping company, warning That bottleneck can last longer than expected.
“Although there have been many difficult times over the years, the situation in the last 12 months is unique in that it has had a global impact. Mass production and operational challenges on all continents. It is occurring and both sea and land capacities are limited at the same time, “Maersk said in a mid-September update.
The company pointed out the outbreak of COVID-19 and the resulting shutdown due to slowdowns in operations.
“Whether it’s a port, a vessel, or a warehouse, when it’s affected, delays build up and quickly create a downward spiral,” said Maersk’s latest information. “There are pockets of improvement because our business is frustrated only when it encounters a new COVID-19 outbreak and blockade.”
Last week, several industry groups representing truck drivers, shipping workers and airline workers warned the UN General Assembly, stating that the government needs to work to improve trade-related freedom of movement. I did.
If nothing is done, they warned of “the collapse of the world’s transportation system” and suggested that “the world’s supply chain is beginning to collapse because of the burden of two years on transportation workers.” according to In the letter.
“There is also a shortage of workers in all transport sectors, hoping that more people will leave as a result of the inadequate treatment faced by millions during the pandemic, making the supply chain more They are under great threat, “their letter said. “Also, the WHO and ILO will raise this at the UN General Assembly and call on the Head of Government to take meaningful and swift action to resolve the crisis now,” they wrote.
Jack phillips
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Jack Phillips is a New York-based reporter for The Epoch Times.