Expert: "Supply chain issues are the worst non-war-related backup world ever"-CBS Miami

2021-12-20 07:06:07 By : Mr. Bruce Yu

Miami (CBSMiami)-The nightmare of the supply chain continues to delay.

Experts now call it the worst non-war-related backup the world has ever seen.

When COVID19 started, the port's trade volume dropped significantly. Now, large-scale surges, coupled with holidays, are causing similar bottlenecks in the supply chain system.

CBS4 News head to the Port of Everglades for more information. It is one of the largest ports in the country and plays an important role in the e-commerce and flow of the supply chain.

"It is very likely that if you eat anything for breakfast, lunch or dinner, you will eat what has been processed through the Port of Everglades," said Jonathan Daniels, director of the Port of Everglades.

The supply chain consisting of ports, railways, roads and aviation is experiencing the worst backup ever.

"What we see is that the supply chain has not been established and cannot keep up with the current problems that are occurring. Some products that should enter the distribution center will not be on the shelves for another 6-8 months," Daniels said.

Triggered by the pandemic, the problems we see in the United States started in California.

"They saw a 50% reduction in the volume of goods flowing through the port," Daniels explained.

A calm, followed by an unprecedented surge.

Daniels said: "This surge happened at the same time that distribution centers and our retailers in the United States began to increase inventory for the holidays. Both of these situations are enough to put pressure on the logistics chain. When they happen at the same time, you have A perfect storm."

The shortage of goods leads to an increase in demand and then inflation.

"We paid more on pumps; we paid more at the grocery store. We need to be prepared and we may see higher prices for a long time."

To solve this problem, Daniels said they plan to stay in the Everglades Port for 10 to 20 years; spending nearly $5 billion on equipment and infrastructure upgrades.

Although the Port of Florida is still in a leading position and is working hard to find a solution, Daniels said that key issues are deeply rooted and require the help of the federal government.

"We must better integrate our transportation network: roads, railways, aviation, ports. If we don't do this, then what we see is that this will happen over and over again."

These supply chain problems will not disappear anytime soon. Experts say that when we see relief, we are likely to enter 2022.