THE WHAT? The CEO of Maersk-owned APM Terminals has warned that elevated consumer demand is exacerbating the supply chain crisis, according to a report published by the Financial Times.
THE DETAILS Morten Engelstoft told the Financial Times that the only way to break the ‘vicious circle’ of the supply chain crisis is via lower consumer demand, particularly in the US where imports were up 20 percent yoy and 11.5 percent verusus 2019 figures.
THE WHY? A global shortage of delivery drivers, ongoing disruption caused by the pandemic and a lack of investment in infrastructure at ports have all exacerbated the crisis. However, the principal problem remains surging demand, per Engelsoft talking to the Financial Times, “The sheer size of business going through is so enormous that the amount of port capacity, truckers, warehouses and even labor to man all the equipment has created a bottleneck.”
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