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Supply chain pressure
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Author: Roger Downes, Posted: Tuesday, 26th October 2021, 08:00
Just a month ago, the queues at the filling stations were ridiculous as fuel tankers failed to get sufficient product to the retail outlets and the public started to panic. Unnecessarily in my view, but that’s an entirely different debate for another day.
The same rumour-mongers that started the fuel supply panic are chomping at the bit to do the same for Christmas supplies of food and presents. They don’t help in the slightest, but there is no smoke without fire and there are definitely issues in the supply chain at the moment.
Pushing up prices that consumers will end up paying
The major problem is the movement of goods. There are queues at ports as we struggle to get goods into the UK, and there is a shortage of HGV drivers to onward deliver them once they are landed. And needless to say it’s pushing up prices that eventually we, the ultimate consumers, will end up paying.
The root cause is complex. The big talking points of the last couple of years are clearly involved. Our withdrawal from the EU has left us with too few drivers, to the point where the government has had to find a way of allowing European drivers to operate in the UK, at least on a temporary basis.
It’s taking longer to offload ships due to Covid-protection measures
The Covid impact is more complex. Many of the goods we import come from the Far East, where the pandemic struck earlier than over here and there have been timing issues ever since. Even when the ships arrive in our ports, it takes much longer to offload them due to Covid-protection measures under which the ports are obliged to operate.
Business has also bounced back from Covid probably more rapidly than any of us were expecting, increasing demand at a time when we are having enough trouble getting our regular supplies. When demand increases, suppliers are able to increase prices, so naturally they do.
What can be done? For most of us, nothing more than crossing our fingers and hoping that things ease sufficiently to allow the shelves to be full for Christmas. Oh, and don’t panic buy!Copyright © 2024 The Local Answer Limited.
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