DUBAI's global port operators DP World expects supply chain bottlenecks to persist two years, at least, reports Bloomberg.
"The global supply chain was in crisis in the beginning of the pandemic," said DP World chairman and CEO Sultan Ahmed Bin Sulayem. "Maybe in 2023 we'll see an easing."
The effects of shortages and the accumulated delays is reflected in the skyrocketing costs of shipping goods, he said. "Freight rates will continue to increase and the shipping lines are having an amazing time."
Global supply chains are struggling to keep pace with demand and overcome labour disruptions caused by Covid outbreaks.
Maersk has also warned bottlenecks may last longer than expected, and some companies have pledged to cap spot rates.
"Even now, every time they see an incident of Covid in China, they shut down a port. Many manufacturers around the world are delayed by as much as three years because they can't get components from China. They're taking a very, very aggressive approach," said Mr Bin Sulayem.
"Belt and Road was built on everything leaving China smoothly in these six belts - three by rail, three by sea. But today, with the obstacle of Covid coming into the equation, I wonder if they'll have to review it."
"There's huge potential in India and that reflects in DP World's investments. Africa continues to grow, and there's also Southeast Asia, mainly Indonesia."
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