With the rise of global vaccinations, the world has just started crawling out of the frozen economy with the rise of Covid-19. Now people are starting to see cars on the streets. Businesses have started to bring people back to their offices. Others are finally starting to travel across the globe. However, the pandemic has not left the world unscathed, but rather a path of both damage and strained problems, this includes the issues of the global supply chain.
But first, if you are in search of a freight handling company in Toronto and the Greater Toronto Area – Radius Freight can help you. We have all your Ontario LTL and Cross Border Shipping Trucking needs covered. We take a unique approach to delivering your time sensitive LTL requirements. Contact us today for or free consultation and to request a free quote at 1-888-468-0210
Challenges of The Supply Chain
With the constant disruptions of businesses in Canada and around the world, people are starting to feel the heat, and there are three major problems plaguing the global supply chain industry. To start off with:
- Labor Issues. There had been a significant rate of unemployment, but now with the rise in demand, industries are radically looking for workers – at the same time while unemployment remains high. There is a great labor shortage, specifically in regards to the truck drivers, factory workers and warehouse workers, creating a reduction in the speed that the supply chain can function.
- Transportation. Furthermore, the transportation and distribution has also been disrupted, with transportation issues causing a large amount of headaches in order to get the necessary materials and products consumers want.
As much as people do not want to hear it, the situation is only likely to get worse before it gets better. Global economic recovery is continuing. Job opportunities are growing, and as the economy starts to build up, it may find itself hindered by the disruptions of the common supply chain. This is unfortunately revealing itself on multiple occasions on a more regular basis.
This is because of the restrictions in regards towards border controls, the lack of a vaccine pass, and a greater demand for people getting stuck at home that is certainly building tensions day by day. Furthermore, it only worsens over the fact that deliveries never seem to be made in time, prices continue to rise and costs grow. This is especially disheartening considering the state the globe is now in, and more and more people start to feel the heat. Everyone around the world is starting to feel the disruption, even if they may not know the actual reason.
What Are the Hidden Risks Of Supply Chain?
Most modern-day products are quite sophisticated, requiring various different materials in order to make them. This means that one singular firm is as a norm incapable of the entire process to create everything by itself. This does include the growth in electronic contents and other various items. For example, many of the Covid-19 vaccines materials tend to come from countries such as South Korea and China.
Additionally, with the rise of Covid, e-commerce has risen at a rapid rate, growing almost 44% within the year 2019 to 2020. This increased the demand of transportation, but also added a dent to the supply chain, causing disruptions. Other known forms of disruptions came issues such as port congestion due to labor shortages. There had also been significant waves of Covid-19 going round, making an issue with staff shortages even though there may have been enough people hired.
Looking To The Future Of Supply Chain
Due to the border controls, the restrictions in the mobility, and the growing demand of people staying at home, it is likely that global productions will still be significantly slow, and the GDP growth world-wide will not be as versatile nor as robust as it should be.
The biggest issue in reality when it comes to the supply chain would be the shortage of truck drivers for LTL and Cross Border deliveries. This seems to be the greatest hindrance causing the congestion at the ports, and has even been the cause for certain gas stations within the UK to run dry. There will be many steps that have to be taken in order for these challenges to be overcome, and this will require the help of everyone who is affected, as well as the patience and support for those who are not.
- Firstly, one of the biggest factors affecting the supply chain are how the countries are reacting towards fighting Covid. China’s main goal is to be clear of any and all cases whereas the US is willing to simply live with it. But this can cause a massive hindrance when it comes to the various rules and regulations in regards towards transportation coming in and out of different places globally. After all, was it not people travelling from various countries that were the main factor in spreading Covid 19?
- Secondly, there is a lack of global effort to help smooth the operation of the supply chains. If more time and strategies were put in place, it is far more likely to see this problem being solved. Global efforts could certainly give the supply chain a much-needed boost. This includes putting concentrated efforts in the employment of staff to reduce the significant staff shortages and increase the level of transportation.
Others seem to have a more optimistic viewpoint on the future of the supply chains, believing that the market systems will adjust very much like the companies have. Is this possible? Such matters to take into consideration is the fact that many companies may not be as significantly affected by the matters and concerns of other countries as much as the supply chain does. They are also not bound by as many rules, regulations and problems border crossings that may occur.
However, the economy, businesses and supply chain have been proven resilient. As much as this problem does affect everyone, there are certainly greater chances for countries and markets alike to adapt to the ever-changing world. By the time the pandemic becomes history, the world and its economy will perhaps be unrecognizable (and hopefully effective as well). The world has survived various different issues and problems. The global supply chain is certainly one dent that needs to be resolved, and the more people who are aware of this issue, the better chances there are for solutions to be created and designed.
At Radius Freight, we have all your Ontario LTL and Cross Border Trucking needs covered. We take a unique approach to delivering your time sensitive LTL requirements by running lean, using technology, communication and well-priced, high-level service to give our clients a competitive advantage. Contact us for or free consultation and to request a free quote at 1-888-468-0210.