How and when the supply problems will be solved
During the pandemic, the global marketplace saw many processes disrupted. During this time, most of them have been restored or reformatted, but there are some areas that are still feeling the effects of Covid-19. According to the IMF, supply-side problems in the logistics sector will not be resolved in the next few years and one must prepare for many years of supply chain disruptions.
Experts also note that problems in the transport sector entail higher inflation, which is already at a high level. All this hampers economic recovery in individual countries and the world as a whole.
Supply problems have affected businesses in various fields. Last fall, supply disruptions were seen around the world, with many companies suffering losses as a result of cargo downtime and delays in the delivery of needed products. According to IMF analysts, the crisis in the logistics segment may continue until 2023. However, many experts are skeptical about this prediction, noting that problems with supplies will be observed for many years to come. It should be noted that at the end of 2021, the monetary fund promised that by the middle of the current year it would be possible to eliminate the shortage of vehicles for logistics tasks, and the remaining problems will be solved by the end of the period. However, this did not happen, as Covid-19 intervened again – the new strain once again slowed down the recovery process.
Analysts point out that even if there are no new problems in the market in the near future, it will take years for the logistics segment to fully stabilize all processes. The fact is that new pandemic outbreaks are forcing people to buy more goods than services, making it impossible for production to meet growing demand. Material shortages, including chemicals and semiconductors, worsen the situation, and quarantine restrictions slow down the production of necessary components. At the same time, the prices of consumer goods are rising and delivery times are increasing. The influence of these and other factors leads to an increase in inflation, which has already reached too high a level.
According to experts, complete elimination of the risks of a new pandemic will not solve all the problems at once. The economy has felt the structural problems, most of which are related to the inefficiency of the old logistics system. In addition, there is a shortage of labor worldwide. To get things right, supply chains need to change completely to reflect the realities of the marketplace. The sooner companies and their customers realize that they need to organize their operations differently, the sooner the supply problem will be solved. As for inflation, once the risk of a pandemic is reduced, it will stabilize.
