Breaking the Chain

Workers Who Maintain Supply Chains Warn of Worldwide ‘System Collapse’
BY JACK PHILLIPS

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September 29, 2021 Updated: September 29, 2021
Workers Who Maintain Supply Chains Warn of Worldwide 'System Collapse'

Several industry groups have warned world leaders of a worldwide supply-chain “system collapse” due to pandemic restrictions, coming as Federal Reserve Chairman Jerome Powell suggested that the current period of higher inflation will last until 2022.

The International Chamber of Shipping, a coalition of truck drivers, seafarers, and airline workers, has warned in a letter to heads of state attending the United Nations General Assembly that governments need to restore freedom of movement to transportation workers amid persistent COVID-19 restrictions and quarantines.

If nothing is done, they warned of a “global transport system collapse” and suggested that “global supply chains are beginning to buckle as two years’ worth of strain on transport workers take their toll,” according to the letter. It was signed by the International Air Transport Association (IATA), the International Road Transport Union (IRU), and the International Transport Workers’ Federation (ITF), which represent some 65 million transport workers around the world.

“All transport sectors are also seeing a shortage of workers, and expect more to leave as a result of the poor treatment millions have faced during the pandemic, putting the supply chain under greater threat,” the letter said. “We also ask that WHO and the ILO raise this at the U.N. General Assembly and call on heads of government to take meaningful and swift action to resolve this crisis now,” they wrote.

Meanwhile, retailer Costco said it’s chartering its own container ships between Asia and North America amid supply chain issues worldwide, Chief Financial Officer Richard Galanti said in a recent conference call.

Costco, he said, is dealing with “port delays, container shortages, COVID disruptions, shortages on various components, raw materials and ingredients, labor cost pressures” along with “trucks and driver shortages,” Fox News reported.

Gene Seroka, executive director of the Port of Los Angeles, attempted to shed some light on the problem during a recent ABC News interview, noting that there’s a significant backup of container ships off the coast of major ports of entry.

“We’re witnessing a pandemic-induced buying surge by the American consumer, the likes of which we’ve never seen,” he told the network on Sept. 29.

In remarks on Sept. 29, Powell said that the current spike in inflation is a “consequence of supply constraints meeting very strong demand,” saying it’s “associated with the reopening of the economy, which is a process that will have a beginning, middle and an end.”

“It’s very difficult to say how big the effects will be in the meantime or how long they last,” Powell said during a forum hosted by the European Central Bank. The current price surge, he said, is due to bottlenecks in the supply chain, although he believes prices will eventually come down on their own. The surge will continue into 2022 before dropping, Powell said.

The Federal Reserve doesn’t anticipate the current trend to “lead to a new inflation regime, in which inflation remains high year after year,” Powell said.

“Managing through that process over the next couple of years is … going to be very challenging because we have this hypothesis that inflation is going to be transitory. We think that’s right,” Powell said. “But we are concerned about underlying inflation expectations remaining stable, as they have so far.”



JonC says of me, (Your talking) "It is more like a child whining that he has to clean his room." 9/29/21

 

The article was copied from the site.


JonC says of me, (Your talking) "It is more like a child whining that he has to clean his room." 9/29/21

 

Costco rents ships to insure delivery.

Rent-a-ship: Costco hires vessels for urgent deliveries

 

One of World’s Largest Port Operators Warns Global Supply Chain ‘Crisis’ Will Last Longer Than Expected

One of World's Largest Port Operators Warns Global Supply Chain 'Crisis' Will Last Longer Than Expected

The Epoch Times encourages sharing of their articles. SGO

BY JACK PHILLIPS

October 4, 2021 Updated: October 4, 2021
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The operator of one of the busiest ports in the world has suggested that global supply chain bottlenecks will last for around two years.

Speaking to Bloomberg News, Dubai’s DP World Chairman and Chief Executive Sultan Ahmed Bin Sulayem said he expects bottlenecks to continue until 2023, and warned that the issues will result in higher costs for shipping goods.

“The global supply chain was in crisis in the beginning of the pandemic,” Sulayem told the media outlet. “Freight rates will continue to increase.

“Maybe in 2023, we’ll see an easing.”

Some analysts and other port operators have said that supply chains are struggling to keep pace with demand and deal with labor disruptions due to the COVID-19 pandemic, lockdowns, and quarantines.

Sulayem’s DP World is one of the largest operators of marine ports and cargo terminals in the world, with hubs in Africa, India, Russia, Europe, and the Americas.

“Even now, every time they see an incident of COVID in China, they shut down a port,” he said. “Many manufacturers around the world are delayed by as much as three years because they can’t get components from China. They’re taking a very, very aggressive approach.”

Suggesting a move away from relying on Chinese markets and possibly the regime’s controversial Belt and Road Initiative, Sulayem noted that there’s “huge potential in India and that reflects in DP World’s investments. Africa continues to grow, and there’s also Southeast Asia, mainly Indonesia.”

The world’s largest shipping firm, A.P. Moller-Maersk, warned that bottlenecks could last longer than anticipated.

“There have been many challenging periods over the years, but the situation over the last 12 months is unique, in as much as it has had a global impact. All continents are seeing high volumes and operational challenges, restricting both ocean and land-side capacity at the same time,” Maersk said in a mid-September update.

The firm pointed to COVID-19 outbreaks and associated shutdowns for the slowdown in operations.

“Regardless if it is a port, vessel, or warehouse, when one becomes impacted, it quickly results in a downward spiral as delays accumulate,” Maersk’s update reads. “We see pockets of improvements, only to get setbacks when our operations encounter new COVID-19 outbreaks and lockdowns.”

Last week, several industry groups that represent truck drivers, shipping workers, and airline workers issued a warning to the U.N. General Assembly that governments need to work toward improving freedom of movement relating to trade.

They warned of a “global transport system collapse” if nothing is done and suggested that “global supply chains are beginning to buckle as two years’ worth of strain on transport workers take their toll,” according to an open letter.

“All transport sectors are also seeing a shortage of workers, and expect more to leave as a result of the poor treatment millions have faced during the pandemic, putting the supply chain under greater threat,” the letter reads. “We also ask that WHO and the ILO [International Labour Organization] raise this at the U.N. General Assembly and call on heads of government to take meaningful and swift action to resolve this crisis now.”