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Global Supply Chain Crisis Here to Stay – DHL

Global Supply Chain Crisis Here to Stay – DHL

(14 June 202 – Global) Supply chain disruptions causing extensive issues across the globe since 2020 are set to remain firmly in place for the long-term, according to DHL.

The problem was caused by severe backlogs across major supply chain hubs as a result of the COVID pandemic, and later the invasion of Ukraine. But while many expected the crisis to ease now the world was transitioning to “COVID normal”, it seems that may not be the case.

According to the New York Federal Reserve’s global supply chain pressure index, which notes factors including backlogs, delivery times and freight costs, the world’s supply chains were facing unparalleled strain, with the situation worsening recently as a result of Chinese lockdowns and “geopolitical developments” which were causing delivery times and costs to blow out.

East & Partners new Global Insight Report Digitising & Greening Global Supply Chains captured forecasts from the Top 100 corporates in eight countries globally as to when they expected disruptions to ease. A high degree of pessimism was expressed by CFOs and corporate treasurers, with many not expecting conditions to ease until as late as 2025.

“While port congestion will start to ease in 2023, there won’t be a return to pre-COVID levels. It’s going to ease in 2023, but it’s not going to go back to 2019. I don’t think we’re going to go back to this overcapacity situation where rates were very low. Infrastructure, especially in the US, isn’t going to get better overnight, because infrastructure developments take a long time” commented DHL CEO Global Forwarding & Freight, Tim Scharwath.

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