Global supply chain hit by ‘string of disasters’
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GNS updates customers on disruptions to supplier base.
A ‘string of disasters’, headed by the COVID-19 pandemic and blockage of the Suez Canal, have caused widespread disruptions to the global supply chain.
Ocean freight has not only become less reliable but also more expensive as supply fails to keep pace with demand.
Nine Media recently reported that one of China’s busiest ports announced it would not accept new export containers in late-May because of a COVID-19 outbreak.
It was supposed to be up and running again in a few days but as the partial shutdown dragged on, it further snarled trade routes and lifted record freight prices even higher.
GNS statement
With the possibility of Christmas trade being affected, GNS Wholesale Stationers has advised its customers that it is seeing an increase in the length of supplier lead times of up to six months in some cases.
In a statement, GNS said: “Increasing congestion across shipping ports in southern China is worsening due to a recent outbreak of COVID-19 cases.
“The Guangdong province, which is a key manufacturing and exporting hub in southern China, is experiencing its biggest backlog since at least 2019.
“As a result, we are facing on-going challenges from our overall supplier base with stock availability due to global manufacturing constraints, continued freighting challenges and pressures on raw material availability.
“We are seeing an increase in the length of supplier lead times of up to six months in some cases.
“Rest assured, GNS is working closely with our suppliers to improve forecasts and stock availability.”
“Our suppliers in some instances are airfreighting stock where they can to help ease the pressure, however we will still continue to have ongoing out of stocks impacting immediate stock availability.”
Date Published:
23 June 2021