Tuesday, July 16 2024

Shanghai adds to Greece’s headaches in supply chains

Shanghai adds to Greece’s headaches in supply chains

Supply chains have another major problem to face due to the recent lockdowns in China, and mainly that in Shanghai, with companies in Greece, too, suffering as a result.

Before the global supply chains had a chance to return to normality, given the overheating recorded in 2021 that led to a major rise in demand and commodity prices, the war in Ukraine generated great unrest in markets and in commodity shipping, and now there are delays in the delivery of orders from China.

Vassilis Korkidis, chairman of the Piraeus Chamber of Commerce and Industry, says delays in the delivery of orders have already reached up to 14 days, and refuses to rule out a further deterioration if the extremely strict measures in China are prolonged.

The main problems in terms of delays are, according to professionals who spoke to Kathimerini, located in the sectors of apparel and hotel equipment. Although no shortages have been recorded yet, that may no longer be the case if the Shanghai lockdown persists, given also that due to the previous problems and the huge hikes since last year corporate stock has run low in most cases. Considering the new tourism season is about to begin, delays in hotel equipment deliveries could cause a number of problems.

Delays from major suppliers in electrical and electronic appliance deliveries do not yet stretch any further than one week; however, a senior official at one of the sector’s leaders tells Kathimerini that delays in deliveries from smaller suppliers are longer and the problems more acute.

The shuttering of major car industries’ plants in Shanghai and other cities in China with lockdowns is expected to aggravate the situation already created in the deliveries of new vehicles: Beforehand there were delays in the delivery of new cars ranging from four to 12 months, and the situation will get worse rather than better.

The freight rates for the shipping of containers have not been affected yet, but no one can rule out such a possibility anymore.