We’ve heard it over and over again, global supply chains are a mess. Truck driver shortages in the UK have caused a petrol shortage. Backlogs of container ships are leading to product shortages on the shelves of US grocery stores. Amazon has warned shoppers to start ordering Christmas presents now to give them time to deliver. In this article the New York Times have visited the Port Of Savannah in Georgia to have a look at what these supply chain issues look like at the coalface.
At the Port of Savannah, containers are backed up. There are 80,000 containers at the port – 50% more than usual. There are more ships waiting at sea to deliver even more containers. And they are not alone in Georgia. In LA, there are more than 50 ships waiting to deliver cargo. In ports in China, there are more than 100. These bottlenecks are having effects throughout supply chains, with American manufacturers waiting a record 92 days on average to assemble parts and raw materials.
According to the New York Times, nearly 13% of the world’s cargo shipping capacity is tied up by delays. This bottleneck was supposed to be temporary, but has remained persistent for a multitude of reasons. Worker shortages have made it difficult to get enough trucks on the road to work through the backlog. The backlog ties up containers and ships, creating a queue of orders waiting to be shipped. These outstanding orders lengthens delivery times, encouraging retailers and wholesalers to stock up and putting more pressure on the system.
Eventually, supply chains will expand capacity, work through this backlog and get back to equilibrium. This just may take some time. Until then, expect these stories to continue. And perhaps order your Christmas presents a little earlier this year.
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