Supply chain bottlenecks that have disrupted global trade flows are expected to last at least another two years, according to Dubai-based DP World, one of the world's largest port operators.
“The global supply chain was in crisis in the beginning of the pandemic,” Chairman and CEO Sultan Ahmed Bin Sulayem told Bloomberg TV in an interview at Dubai Expo 2020 on Friday. “Maybe in 2023 we’ll see an easing.”
The effects of shortages and the accumulated delays is reflected in the skyrocketing costs of shipping goods, he said. “Freight rates will continue to increase and the shipping lines are having an amazing time.”
Covid outbreaks are causing labor disruptions around the world, and global supply systems are straining to keep up with demand. A.P. Moller-Maersk, the world's largest shipping line, has also warned that bottlenecks may linger longer than anticipated, and some companies have committed to control spot rates.
