Several industry groups have warned world leaders of a worldwide supply-chain “system collapse” due to pandemic restrictions, with Federal Reserve Chairman Jerome Powell suggesting the current period of high inflation will last until 2022.
The International Chamber of Shipping, a coalition of truck drivers, sailors and airline workers, has warned in a letter to the heads of state participating in the UN General Assembly that governments need to restore freedom of movement for transport workers amid persistent COVID-19 restrictions. Is. and quarantine.
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 pressure on transport workers takes their toll,” in his letter. According to. 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 approximately 65 million transport workers worldwide.
“All transport sectors are also seeing labor shortages, and millions more are expected to leave as a result of poor treatment during the pandemic, putting the supply chain at greater risk,” the letter said. “We also call on the WHO and ILO to raise this at the United Nations General Assembly and call on heads of government to take meaningful and prompt action to resolve this crisis,” he wrote.
It comes as retailer Costco said it is leasing its container ships between Asia and North America amid worldwide supply chain issues, Costco CFO Richard Galanti said in a recent conference call.
Costco, he said, is dealing with “truck and driver shortages” along with “port delays, container shortages, COVID disruption, various components shortages, raw materials and materials, labor cost pressures.”
Jean Cerocca, 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 is a significant backup of container ships ashore at major ports of entry.
“We are seeing a pandemic-induced purchase growth by the US consumer the likes of which we have never seen,” he told the network on Wednesday.
In remarks on Wednesday, Powell said the current spike in inflation is “the result of supply constraints driving very strong demand,” adding that it is “associated with reopening the economy, which is a process which will have a beginning, a middle and an end.”
“It is very difficult to say how big or how long the effects will last in the meantime,” Powell said during a forum hosted by the European Central Bank. He added that the current price jump is due to disruptions in the supply chain, although he believes that prices will eventually come down on their own. Powell said the boom would continue until 2022 before declining.
Powell said the Federal Reserve “does not anticipate the current trend to move to a new inflation regime in which inflation remains high year-over-year.”
“Managing through that process over the next few years … is going to be very challenging because we have this hypothesis that inflation will be transient. We think that’s right,” Powell also said. “But we We are concerned about the underlying inflation expectations remaining stable, as they have been so far.”
This News Originally From – The Epoch Times