CHINESE NEW YEAR AGGRAVATES THE SITUATION OF THE GLOBAL SUPPLY CHAIN

The latest report from shipping technology firm Ocean Insights warns that a failure in intermodal connectivity between factories and ports could worsen the current logistics situation.

Metrics such as the reliability of carrier schedules are worsening, causing the time invested per container to go from one day in January 2020 to more than five days in January 2021, a fact that has led Ocean Insights to affirm that “they can spend several months for the supply chains to return to an apparent normality ”.

No truckers to transport the goods

The company points, among other factors, to internal travel restrictions imposed by the Chinese authorities, which require domestic carriers to self-quarantine for 14 days after their trips, “generating new bottlenecks for supply chains and global shipping ”.

Given these forecasts, the Chinese authorities asked the transport professionals to stay and celebrate this date in their usual place of residence, responding to the needs of the factories, which were kept open to compensate for the seasonal decline in industrial production during the New Year.

However, even with all these efforts underway, getting those products to market will be challenging. Most truckers have chosen to go home for the New Year, making them subject to mandatory quarantines. In some areas, up to 95 percent of truckers will be unavailable, with the worst-hit regions in the south of the country.

For Ocean Insights, the situation will make its effects felt in the next two weeks, where the outlook "will further strangle connectivity between factories and ports."

Source: Logistics Notebooks via DGCI

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