Containers pile up in ports as companies struggle to cope with rising consumer demand – Copyright AFP Nhac NGUYEN
The global supply chain struggles against a backdrop of rising demand, labor shortages and production delays as countries begin to recover from the economic damage they suffered during the coronavirus pandemic.
In fact, President Joe Biden described several new steps the US is taking to strengthen and streamline supply chains when he met with G20 members to discuss the bottlenecks that are hampering the global economy.
Biden found that very few people had ever followed the flow of goods in ports until it became clear earlier that year that infrastructure used to move goods around the world was badly broken and in need of repair, reports Associated Press.
“Supply chains are something most of our citizens never think twice about until something goes wrong,” said Biden. âIt is not a problem that one of our nations can solve through unilateral action. The coordination is the main reason for this meeting. “
It’s also worth noting that while many of the world’s leading economies are spending $ 15 trillion together fighting the fallout from COVID-19, most of those countries are in the same boat as the US – trying to get their way through like ships Fighting mass shortages await docking, shipping container prices are rising, there aren’t enough trucks to move goods out of ports, and virus outbreaks are halting factory production.
CNN cited a report by Moody’s Analytics released in mid-October that described the shortage of truck drivers as the “weakest link” in the world’s supply chain problems – a problem that has contributed to port congestion and gas stations in the UK Run Dry .
Biden discussed how each county could identify and address âbottlenecksâ, adding that greater coordination between countries is needed to strengthen the supply chain. The president also said the State Department would allocate funds to help Mexico and Central America alleviate supply chain disruptions and bottlenecks
It all boils down to one problem – the inability to manufacture and ship goods increases prices and weighs on the global economy.