SUPPLY CHAIN
Proactively managing
supply chain risk
If you’re in the business of importing or exporting, you will be acutely aware of the current pains caused by global supply chain problems. With the help of expert advice, there are several steps you can take to protect your business. Shipping congestion While supply chain logistics have yet to recover fully from the severe lockdowns at the start of the Covid-19 pandemic in the first quarter of 2020, further port closures and other disruptions are impacting negatively on supply chains and causing rising costs. But there are other consequences too. The closures have led to congestion and long delays in shipping, as well as a shortage of empty containers for loading and moving goods elsewhere around the globe. China has seen several port closures over the past year as that country grapples with repeated Covid-19 outbreaks and opts for a drastic response. In addition, we have seen shipping disruption resulting from the Ukraine-Russia hostility and even South Africa’s harbours have seen interruptions this year from extreme flooding and damage to key infrastructure. A Royal Bank of Canada (RBC) study in May found that a fifth of the global container ship fleet was currently stuck in congestion at various major ports, while the local computer and network industry has been warned of delays that will last into 2023 due to the shipping backlogs.
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