According to a Report by Reuters on July 23, a new wave of COVID-19 has emerged around the world. Events have combined to push global supply chains to breaking point, threatening the fragile flow of raw materials, components and consumer goods, according to companies, economists and transportation experts.
The novel coronavirus Delta strain has devastated parts of Asia and prompted many countries to cut off land routes for sailors, the report said. This prevented the captain from rotating the tired crew. Some 100,000 seafarers are stranded at sea, working overtime, and the situation is rapidly turning back to 2020 and the peak of the blockade.
Guy Platten, general secretary of the International Shipping Conference, said: "We are no longer on the brink of a second crew change crisis, we are in it. This is a dangerous moment for global supply chains."
With about 90 per cent of global trade carried by ships, the crew crisis is disrupting supplies of everything from oil and iron ore to food and electronics.
"Ship capacity is very tight, empty containers are scarce and there has been no real improvement in the operation of certain ports and terminals," the report said. We think this could continue into the fourth quarter, but it is hard to predict."
Nick Klein, vice president of sales and marketing for The Midwest region of Hapek, said that because of a series of crises, many companies are rushing to release cargo that has piled up at ports in Asia and the United States. "It won't be cleared until March next year," he said.
Union Pacific is one of two major rail operators that transport goods inland from west Coast ports, the report said. The company suspended shipments, including consumer goods, to a Chicago distribution center over the weekend for seven days.
Experts say the effort to ease Chicago's "severe congestion" will strain the ports of Los Angeles, Long Beach, Oakland and Tacoma.
