Global Bottlenecks – US Delivery Problems Could Last Longer – News

It’s all about this: In the USA, containers are jammed in ports, although more goods are being handled than ever before. There is a lack of capacity, especially in the large ports on the west coast of the USA. According to US Secretary of Transport Pete Buttigieg, the current supply chain problems are likely to persist into the coming year. “The problem is that our ports are handling more than ever before, namely record volumes of goods, but our supply chains cannot keep up,” Buttigieg said in an interview with CNN.

This is how the US government reacts: US President Joe Biden announced last week that in addition to the port of Long Beach, the port of Los Angeles will also be in continuous operation. The two ports in the state of California are the largest ports in the United States. The backlog is to be reduced with continuous operation.

Legend:

At the Port of Long Beach, work is currently ongoing. The aim is to minimize the supply chain problems.

Reuters

The system of supply chains is largely in private hands – and that is also correct, said Buttigieg. It is therefore up to the government to bring all actors together. Biden’s government has negotiated with unions, operators and freight forwarders to enable the ports to operate continuously. The US retailer Walmart and the US parcel services UPS and Fedex have also agreed to work outside of their peak hours to unload or transport the goods, said Biden.

These are the reasons for the delivery problems: The USA is currently feeling the global delivery problems and bottlenecks. “This acute shortage of capacities is mainly due to the fact that the economy is recovering around the world after the pandemic. Consumption is booming and demand is high. At the same time, the supply is stalling and the logistics are at their limit, ”explains SRF business editor Jan Baumann. In the USA, too, the demand for products is currently going through the roof.

This is what China has to do with the bottlenecks in the US: A large part of the products for daily consumption is still made in Asia, especially in China. The bottlenecks there are also acute at the moment. Chinese industrial companies are already having to cut production because of a lack of electricity. These problems are already noticeably depressing growth in China. In the third quarter, the Chinese economy grew by a mere 4.9 percent – as little as never before this year.

Where the delivery bottlenecks are also noticeable: In addition to delivery problems at the ports, many logistics companies in the USA report a shortage of truck drivers. Bottlenecks in electronics are also known, as Baumann explains: “There has been a shortage of microchips around the world for months. These semiconductors are needed for computers, gaming consoles and the automotive industry. Most automakers – including those in the US – have already had to cut production due to the global chip crisis. ” A rental car is currently only available with a lot of luck.

These are the forecasts for the US economy: How the economy develops further depends on the prices for goods and services as well as the development of wages. “If everything quickly becomes more and more expensive and wages in the USA continue to rise sharply, the US Federal Reserve cannot stand by for long. It will then soon tighten the reins of monetary policy and raise interest rates sometime next year, ”explains SRF business editor Jan Baumann. Then the question arises of how much growth will be slowed down again by such rate hikes.