After the pandemic came supply chain disruptions and consumers were left without products. When will the nightmare end?
The first half of 2020 was marked by lockdowns and supply chain problems. With the launch of vaccination campaigns, the global economy began to return to a familiar pace. However, supply was not able to meet the increased demand as long delays in navigation disrupted the operation of supply chains.
Because many consumers worldwide no longer traveled or went out, they turned to the electronics market, much to the surprise of the industry. This impressive demand, however, collapsed when ports of export to China and southwest Asia in general began to close. Everywhere in the world, consumers have struggled to find everything from bicycles to cars, from cell phones to microchips.
Microchip shortages brought the automotive industry to its knees
The overcrowding of container ships in US and European ports resulted in about 400 to 500 ships being stranded in November until unloaded. Container shortages boosted their cost, which quadrupled from a year earlier, according to market research firm Drewry Shipping.
The car industry has been hit hard by the lack of semiconductors, which are a key component of modern vehicles, whether touch screens or navigation systems. Many automakers have even been forced to suspend production. Microchip shortages are not just due to transport delays. High demand for electronics such as laptops, mobile phones and gaming machines deprived the automotive industry of the required number of semiconductors.
Eurozone car production fell by more than 25% in the first nine months of 2021 – in Germany by 30% – compared to 2019. As a result, global car sales fell by 20% between April and September, according to OECD data. .
It will take time for the supply chains to recover
The problems in the supply chains lasted much longer than the experts predicted. It is almost impossible to overcome this alley relatively soon, as it takes time to restore shipping. Especially if the aim is to strengthen the resilience of supply chains by moving production and suppliers closer to the destination markets of products.
“When supply chain problems will be solved can not be predicted,” said Angel Talavera in a statement from Oxford Economics. in the provision of services will reduce the pressures on the supply chains in 2022 “. All this, of course, provided that the new Omicron mutation does not worsen the situation on the pandemic front.
Asoutos Pandi
Edited by: Stefanos Georgakopoulos
Source: Deutsche Welle
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Source From: Capital
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