The supply chain crisis could last up until 2023, Associated British Ports (ABP) – the UK’s biggest port operator – has warned.
ABP’s chief executive Henrik Pedersen, told the Sunday Times: “When you have congested container ports around the world, it takes a very long time to turn it around. We have a shortage of truck drivers in the UK, and in other countries too, so the problem is in the shipping leg and the road leg.”
The economic stimulus of the last 18 months has strained supply chains all over the world and caused a shortage of containers and a consequent hike in the price for moving goods.
Adding a Brexit-induced shortage of HGV drivers on top of global issues, shipping giant Maersk was forced to divert vessels from Felixstowe to European ports.
“Britain’s escalating truck driver shortage means it is taking about ten days before cargo at Felixstowe can be unloaded, up from the usual four and-a-half days,” said David Jinks, head of consumer research at home delivery company Parcelhero. “That’s why Maersk has chosen to avoid Felixstowe by using EU ports to land goods destined for the UK. This will add new delays, especially with Brexit checks in place.”
The global supply chain crisis is not only affecting the shipping industry but it’s also undermining the country’s economic growth, City A.M. reported.
The ONS said recently the British economy has expanded 1.3 per cent between July and September, down 5.5 per cent compared with the previous three months. The ongoing issues and a scarcity of workers have also caused the country to fall behind other G7 nations such as France and Italy.
Supply chain worries are shared also by consumers, with 90 per cent of Brits worried these issues are here to stay.
Data published by Oracle has revealed that 70 per cent of consumers would be more willing to buy from a brand that used Artificial Intelligence to manage their supply chain, with 85 per cent of shoppers under 35 stating they would switch labels instead of waiting for their products to arrive.
“Supply-chains are global but the technology is available to manage them from anywhere in the world, predicting disruption in order to get ahead of it, and keeping customers updated in real-time,” Oracle’s EMA, consulting, business transformation chief customer office Emma Sutton said.