Saturday, October 23, 2021

One of the world’s largest port operators has warned of a global supply chain ‘crisis’ that will last longer than expected

The operator of one of the world’s busiest ports suggested that bottlenecks in the global supply chain would remain in place for nearly two years.

Speaking to Bloomberg News, Sultan Ahmed bin Sulayem, chairman and CEO of Dubai-based DP World, said he expects bottlenecks to remain in place until 2023. The issues would result in a higher cost of shipping goods, he warned.

“The global supply chain was in crisis at the start of the pandemic,” Sulayem told the news outlet, adding that “freight rates will continue to rise.” And “maybe in 2023, we will see an easing,” he continued.

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.

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

“Even now, whenever they see an incident of COVID in China, they close a port,” he said. “Many manufacturers across the world are facing delays of up to three years because they cannot get components from China. They are 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 said that “India has huge potential and this is reflected in DP World’s investments. Africa continues to grow.” and Southeast Asia, mainly Indonesia.”

Meanwhile, the world’s largest shipping firm, AP Moller-Maersk, warned that bottlenecks could last longer than anticipated.

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

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The firm pointed to the COVID-19 outbreak and related shutdowns for the slowdown in operations.

“Whether it is a port, vessel or warehouse, when one is affected it quickly spirals downwards as delays accumulate,” said Maersk’s update. “We see pockets of reforms, setbacks only when our operations face the new COVID-19 outbreak and lockdowns.”

Last week, several industry groups representing truck drivers, shipping workers and airline workers issued a warning to the UN General Assembly that governments need to work towards improving freedom of movement related to trade.

If nothing is done, he warned of the “collapse of the global transport system” and suggested that “global supply chains are beginning to shrink as two years of stress on transport workers takes their toll,” a letter read. According to.

“All transport sectors are also seeing labor shortages, and during the pandemic millions of people have further jeopardized the supply chain as a result of poor treatment,” their letter said. “We also ask that the WHO and ILO take this up to the United Nations General Assembly and call on heads of government to take meaningful and prompt action to resolve this crisis,” he wrote.

Jack Phillips

senior reporter

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Jack Phillips is a reporter for The Epoch Times in New York City.

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This News Originally From – The Epoch Times

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