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These Two Trade Hurdles Could Prolong an International Supply Chain Storm

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Manufacturers + Suppliers

These Two Trade Hurdles Could Prolong an International Supply Chain Storm

From stalled manufacturing in China to failed labor negotiations in the United Kingdom, supply chain obstacles are mounting across the globe


August 17, 2022
Ship loaded with shipping containers leaving port
Image: Stock.adobe.com

After years of backlogs and lengthy delays, it seems that the pandemic-related supply chain storm is far from over. According to CNBC, a heatwave in China recently shut down key manufacturing, while a growing backlog of European imports will likely spill over into the first quarter of 2023. 

On top of that, the latest round of negotiations between the trade union verdi and the Central Association of German Seaport Operators (ZDS) remains unresolved. If both parties fail to reach a compromise by August 22nd, the port workers could strike again, causing even lengthier delays toward the end of the year.

The labor strife is also being felt in the U.K. Beginning on August 21st 1,900 dock workers at the Port of Felixstowe, the U.K.’s largest container port, are planning on strike after talks failed on their ongoing pay dispute.  The strike would last until August to Monday 29th August. Approximately 40 percent of all containers that arrive and depart from the United Kingdom are processed at Felixstowe.

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