Suppliers are finding it challenging to meet their customers’ demands due to issues such as the global shipping container crunch, rising freight rates, stock delays and tighter regulations that come with stricter lockdowns. Concerns remain over China’s supply chain and the international supply chain in general.
According to Container News, the CEO at China International Marine Containers, the world’s biggest container manufacturer, believes the shipping container crunch will continue this year. The article quoted CEO, Mai Boliang, as saying: ‘The problem is not insufficient supply, but the poor circulation of containers. There are two main reasons: one is that the world’s 20 busiest ports are currently in ‘traffic jams’, with ships queuing, and empty containers cannot be shipped back; the other is that new Covid-19 outbreaks have caused many countries and regions to suspend economic and industrial activities.’
In a release by J.M. Rodgers Co., the CEO states that ‘persistent and hard-to-solve issue has been the ability of shippers to simply get their hands on the equipment they need to ship, especially shipping containers. Uneven global slowdowns in freight have led to displacement of supply, making them difficult to access for many shippers as empty containers are not necessarily where the cargo must be’.
Also adding to suppliers’ frustration is the rising freight rates. According to this article ‘with new capacity only slowly coming on stream, freight rates are expected to continue to reach new highs this year and will remain above their pre-pandemic levels in the longer term’.
Devandran Naicker, Managing Director of Uniplate – of which Falcon Signage Supplies is a subsidiary – said, ‘The China dilemma is not just affecting the printing and signage industry. Globally, all supply chains have been constrained. Covid has affected the supply of products globally due to the enforced lockdowns by governments, preventing the free movement of goods, which has resulted in shipping line delays, thus increasing the lead-time of products sourced.’
‘In the midst of a third wave in most countries in the past six weeks, supply chains will be compounded by the current state of affairs affecting the global shipping lines and companies respectively. We thus urge our valuable customers to be patient as we navigate the compounded effects of this pandemic.’
According to another industry supplier, even with the use of reputable courier companies, stock delivery is challenging. Areas that have been affected include spare parts, machines and shipping, and airline cargo space is also a problem.
|
LOCAL DISTRIBUTOR |
