One of the main issues for the logistics giant is there aren\u2019t enough truck drivers to pick up the containers from the ports.<\/p>\n\n\n\n
At the end of last week, Maersk had 84 vessels wait for an average of 18 days in front of ports.<\/p>\n\n\n\n
While many countries have been closed to travelers at various times during the pandemic, the supply chains and the transportation routes have remained open.<\/p>\n\n\n\n
Supply chain chaos will likely persist through to the middle of next year, according to Jim Snabe, chairman of German conglomerate Siemens and Danish shipping firm Maersk.<\/p>\n\n\n\n
Businesses and consumers around the world are currently facing lengthy delays on products and materials because of supply chain issues.<\/p>\n\n\n\n
Speaking to CNBC\u2019s Annette Weisbach on Tuesday, Snabe said: \u201cRight now, we have congestion primarily in the West Coast of the U.S. where the ports are full of containers.\u201d<\/p>\n\n\n\n
While many countries have been closed to travelers at various times during the coronavirus pandemic, supply chains and transportation routes have remained largely open.<\/p>\n\n\n\n
\u201cThe trade of goods has actually gone up, not down,\u201d he explained. \u201cThere was a short period when the factories closed when the volumes went down but since the middle of 2020, the demand for physical products has gone up dramatically.\u201d<\/p>\n\n\n\n
The pandemic has resulted in more people working remotely and investing in their homes.<\/p>\n\n\n\n
\u201cThe trade of goods has actually gone up, not down,\u201d Snabe said, adding that he believes this is because people don\u2019t spend as much on services anymore. \u201cWe don\u2019t go to restaurants so much, we don\u2019t go to the cinema, we don\u2019t travel. People are home and they want to improve their homes.\u201d<\/p>\n\n\n\n
One of the main issues, Snabe said, is there aren\u2019t enough truck drivers to pick up containers from the ports.<\/p>\n\n\n\n
At the end of last week, Maersk had 84 vessels wait for an average of 18 days in front of ports, Snabe said. \u201cThat takes capacity out of the shipping industry because they are lying there idle,\u201d he said.<\/p>\n\n\n\n
\u201cYou have higher demand and lower capacity, not because we don\u2019t have enough vessels, but because they are not sailing because of congestion,\u201d Snabe added. \u201cWe have to balance that out. We think this will happen somewhere mid-next year, but maybe not before.\u201d<\/p>\n\n\n\n
Important items used in areas like healthcare can often be fast-tracked when necessary, Snabe said.<\/p>\n\n\n\n
Semiconductors have been in particularly short supply during the pandemic, leading some car companies to pull semiconductor-reliant features from their vehicles and lengthy delays on products such as Sony\u2019s PS5.<\/p>\n\n\n\n
\u201cWe can make sure that that we can deliver,\u201d Snabe said, adding that Siemens has a \u201cpreferred relationship\u201d with its semiconductor suppliers.<\/p>\n","protected":false},"excerpt":{"rendered":"
One of the main issues for the logistics giant is there aren’t enough truck drivers