We have researched some issues that are being faced by OEM’s and suppliers the world over.
It simply becomes – Too much volume, not enough workers at several points of the supply chain.
To put this into perspective, The United States is short an estimated 80,000 truck drivers according to the American Trucking Association. That holds up freight moving quickly.
US Ports are holding ships off the coast for just over 2 weeks – one even up to two months , as ports struggle to cope with space and demand.
President Joe Biden launched The Ports of Long Beach and LA to operate 24/7 to help move shipping containers. Shipping companies are set to be penalised daily for having containers in place longer than 9 days. It’s believed these measures will help clear containers quicker, but those costs will end up being absorbed by the consumers. US Inflation figures are at 6.2% in Oct 2021, near the high of 6.3% in Nov 1990!
In Western Australia, as COVID Cases increase, we are seeing flow on effects. The Freight and Logistics Council met with the State Government recently to identify challenges impacting the State. Minister for Transport, Planning and Ports HON Rita Saffioti understands the concerns around about freight and essential supply impact.
“We know many Western Australians are concerned about the impact the pandemic is having on freight and supply chains, particularly with what is happening on the east coast.
“In 2020 when the effects of COVID were beginning to be felt, we made changes to planning and development regulations to ensure the continuation of essential public services in a State of Emergency.
“One of these changes included removing curfews on the times vehicles could make deliveries to supermarkets. We are examining a range of other measures to ensure we keep trucks and freight running and essential supplies available.” The Minister said.
So supply issues are not City, State or Country specific. Just as Australia is suffering worker shortages, so too is the US. Based on society seeking products over services.