Supply chain problems holding back the global economy as it recovers from the pandemic

Containers pile up at ports as companies struggle to deal with rising consumer demand – Copyright AFP Nhac NGUYEN

The global supply chain has struggled against the backdrop of surging demand, labor shortages and manufacturing delays as countries begin to emerge from the economic damage they suffered during the coronavirus pandemic.

In fact, President Joe Biden detailed several new steps the United States is taking to strengthen and streamline supply chains as it meets with members of the Group of Twenty to discuss bottlenecks affecting the global economy.

Biden noted that very few people followed the flow of goods into ports until this year it became clear that the infrastructure for transporting goods around the world was seriously broken and in need of repair. News agency.

“Supply chains are something that most of our citizens don’t think twice about until something goes wrong,” Biden said. It is not a problem that any of our nations can solve through unilateral action. Coordination is the main reason for this meeting. “

It is also worth noting that while many of the world’s leading economies are spending a total of $15 trillion to combat the fallout from COVID-19, most of these countries are in the same boat as the United States, trying to overcome massive shortages. Dockside, high container prices, not enough trucks to transport goods from ports, and virus outbreaks are disrupting factory production.

CNN cites Moody’s Analytics report Released in mid-October, which called the “weakest link” in global supply chain problems a shortage of truck drivers, a problem that has contributed to congestion at ports and drying up of UK gas stations.

Biden discussed how each county can identify and resolve “bottlenecks,” adding that More coordination between countries It is necessary to strengthen the supply chain. The president also said the State Department will provide resources to help Mexico and Central America ease supply chain bottlenecks and disruptions.

It all boils down to one question: the inability to manufacture and ship products causes prices to rise and the global economy to decline.