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Supply chain disruption is still causing delays and shortages

September 03, 2021 00:00 AM UTC
- Updated March 18, 2022 16:16 PM UTC

The COVID-19 pandemic is to blame.

computers, cars, coffee, chicken, A lot of items are in short supply right now. And the problem is the global supply chain is caught in a cycle of disruption and it's going to be hard to fix, how exactly did we get here? Thanks to the covid pandemic. Individuals and companies alike now know the fear of running out of things like toilet paper and lumber, hoping to prevent empty shelves in the future and keep up with a rapidly recovering economy companies are trying to stockpile goods, Panic buying has driven businesses to order more items sooner than they would have in the past. That leaves the factories producing these goods trying to keep up and unfortunately they're running into a shortage of raw materials. But the problems don't end there. Distribution and shipping are another key part of the supply train crunch activity at american ports has been slowed by a shortage of workers, people staying home to slow the pandemic spread. Even worse ports throughout china have shut down for weeks at a time due to the spread of covid variants, all of these delays and the demand this has created has caused the prices of production and distribution to spike. Manufacturers have found themselves forced into bidding wars to get space on shipping vessels, pushing freight rates to record highs, according to the Drewry World container index, the cost of sending a container from Asia to europe is about 10 times higher than a year ago and the cost from shanghai to Los Angeles has grown more than six times. Some companies have been forced to cut production As a result, All of this leaves consumers without the products they want or forced to pay higher prices. So when you look at the global supply chain, there are headaches and holdups at each stage, and many are predicting this cycle of disruption. We last well into 2022. Mhm.