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Global supply chains buckle as variants and disasters surge

With supply chains barely back to a semblance of normal a few weeks ago, the fragile flow of raw materials, parts, and consumer goods are again under strain.

In the best of times, the global supply chain has contributed to growth in the volume of freight moving around the world. Source - Federal Highway Administration, Public Domain
In the best of times, the global supply chain has contributed to growth in the volume of freight moving around the world. Source - Federal Highway Administration, Public Domain

Surging coronavirus cases globally, natural disasters in China, Germany, and India, raging wildfires in North America, and a cyberattack targeting key South African ports – All these events have conspired to drive the global supply chain to the breaking point.

With supply chains barely back to a semblance of normal a few weeks ago, the fragile flow of raw materials, parts, and consumer goods are again under strain, according to companies, economists, and shipping specialists, reports the Sydney Morning Herald.

The Delta variant of the coronavirus is devastating parts of Asia, prompting many countries to block access to land for the crews of many ships, leaving captains unable to rotate tired sailors, leaving close to 100,000 crew members stranded at sea.

“We’re no longer on the cusp of a second crew change crisis, we’re in one,” Guy Platten, secretary-general of the International Chamber of Shipping, told Reuters. “This is a perilous moment for global supply chains.”

Coal cars in Ashtabula, Ohio. Image by Decumanus at Wikipedia. Creative Commons.

Nearly 90 percent of consumer goods are moved by ships, and this can include everything from oil, iron ore, coal, and natural gas, to food, electronics, and r4aw materials.

German container line Hapag Lloyd described the situation as “extremely challenging.”

“Vessel capacity is very tight, empty containers are scarce and the operational situation at certain ports and terminals is not really improving,” it said. “We expect this to last probably into the fourth quarter – but it is very difficult to predict.”

Electrolux, Europe’s biggest home appliances maker, warned this week of worsening component supply problems, which have hampered production, while Domino’s Pizza said the supply-chain disruptions were affecting the delivery of equipment needed to build stores.

Some 1,600 jobs are being cut at a Jeep Cherokee factory in northern Illinois as automakers continue being plagued by the global shortage of semiconductors. Image- Elishur19, CC SA 4.0.

The automotive industry continues to be hit hard. Some companies have been forced to suspend production due to renewed COVID-19 outbreaks, or an inability to get needed parts.

Stellaris, the maker of Fiats, Peugeots, and Chryslers, temporarily suspended production at a factory in Britain because a large number of workers had to isolate to halt the spread of the virus.

Remember those semiconductor chips needed by the automakers? Earlier this year, the auto industry consensus was that the chip supply crunch would ease in the second half of 2021 – but now, some senior executives say it will continue into 2022.

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We are deeply saddened to announce the passing of our dear friend Karen Graham, who served as Editor-at-Large at Digital Journal. She was 78 years old. Karen's view of what is happening in our world was colored by her love of history and how the past influences events taking place today. Her belief in humankind's part in the care of the planet and our environment has led her to focus on the need for action in dealing with climate change. It was said by Geoffrey C. Ward, "Journalism is merely history's first draft." Everyone who writes about what is happening today is indeed, writing a small part of our history.

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