Global supply chain in 1 minute – Firius Reports (September 2022)
🔎 We select for you the most relevant facts about the global supply chain situation.
To make a brief summary, we will quote GE CEO Larry Culp, 👉 “Supply chains, broadly defined, are still challenging (…) You might have success here. You might make progress there, but I don’t think we’re anywhere close to declaring victory.”
Now let’s break it down bit by bit:
⛴ Sea freight rates have dropped significantly from their peak in Q1 2022 at €15k, down to €8k per container from China and €4K from the US. Still those remain above the pre-COVID rates €2k and €1k respectively.
⚓️ Port congestion remains as the biggest concern worldwide, with more than 11% of the vessels stationary awaiting to load/unload vs 5% average in previous years. US, UK, China and Germany ports cumulate the most of the delays.
🚛 In Europe, the lack of truck drivers continue to be a bottleneck for road freight. In addition, rivers in Central Europe have not yet recovered their transport capacity after the extremely dry summer, which adds additional pressure to the already constrained road freight market.
🚂 In the US, there is additional tension over the road transit because of the risk of strike in the railroad. There is a preliminary agreement with the unions that is yet to be ratified
✈️ And last but not least, Air cargo. Preighters (passenger Air draft used as freighters during COVID) are no longer allowed to operate, which has caused a decline in the air cargo space available. At the same time, the demand for aircraft to be taken back to operation after COVID stoppage is greater to the MRO capacity to perform the required operations, a constraint that will last at least until mid-2023.
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