CNBC reports that the US supply chain is now facing two separate hurdles: one in Europe, the other in China.
First, a heatwave in China has shut down key manufacturing facilities there. Second, negotiations between the trade union verdi and the Central Association of German Seaport Operators (ZDS) remain inconclusive.
“If no compromise will be made, we can expect further strikes which will, even more, worsen the already stressed situation in the Northern Ports,” explained Andreas Braun, Europe, Middle East, and Africa ocean product director of Crane Worldwide Logistics. “Congestion, vessel schedule, and intermodal operations are already a mess and further strikes will just contribute to it. We will not see a change back to a normal situation before Q1 2023.”
Meanwhile, high temperatures in China are forcing some manufacturers to shut down production for six days because of government planned power cuts. Power limit notices for manufacturers in Changzhou, Nanjing, Nantong, and other regions in Jiangsu province have Worldwide Logistics alerting import clients in an email that, “The sudden orderly power consumption notice has made the supply chain more challenging under (the) current situation of (the) COVID -19 epidemic.”
There’s a lot more detail at the article. Have a look here.