Global Supply Chain Crisis Unlikely to End Anytime Soon
- May 11, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
As global port congestion remains frantic and operational costs still high, the possibility of land and sea supply chain difficulties ending anytime soon is low and there is no quick fix to solve the problem.
Recent demurrage charges amounted to €3,500/tonne a day.
The market is dealing with unreliable deep sea import deliveries, and continues then with land transport difficulties once the imports arrive.
While the time differs according to the origin of the shipping line, the delays can reach three-to-four weeks.
Most delays have come off their peak, but still have an impact on markets.
The problem does not end once the ships arrive. Finding the trucks then becomes the problem as there are not enough truck drivers for the supply chain to run smoothly.
The lack of containers has resulted in a preference for break bulk, but the organization is laborious. But break bulk comes with risks such as loss of product and contamination.
Some buyers have been able to buy smaller volumes such as 500 tonnes, due to them combining their volumes with other customers.
The continued high sea and land freight costs and problems are just part of the rising production costs, and problems facing raw materials and energy.
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