Supply chain crisis could last into next year, Pete Buttigieg warns

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Transportation Secretary Pete Buttigieg said on Sunday that it is likely the US will continue to have some supply chain issues from 2020 to 2021.

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speaking on CNN state of the Union, The secretary argued that the Biden administration was working to mitigate the issues facing the supply chain presented by the Covid-19 pandemic, but insisted that some are likely to endure.

“[A] The challenges we face this year will continue next year as well,” Mr Buttigieg said, before adding: “It’s the demand side. Demand is off the charts. Retail sales are through the roof. “

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“Demand has increased because incomes are rising,” he argued, drawing a link between increased demand and the recovery from 2020 job losses. “Because the president has successfully pulled this economy out of the teeth of a terrible recession.”

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His remarks come just days after President Joe Biden delivered a national address about the problems facing the US supply chain, and faced questions from reporters whether holiday packages would arrive on time.

While Mr Buttigieg’s statements about rising demand are accurate, not all problems can be described as stemming from that issue. Most of the problems faced by both port overseers and companies up and down the supply chain stem from labor shortages that have persisted over the past year, and so far there has been little response from the White House.

Mr Biden announced in his speech this week that the ports of Los Angeles and Long Beach in California would switch to 24/7 operations, but the administration has taken action to make yet more workers responsible for receiving goods in various industries. Haven’t. From manufacturers or farms to the shopping carts of Americans.

Some industries, including retail and food service, have started wagering in some sectors in an effort to encourage greater hiring, but many trucking companies and other transportation-related industries faced labor shortages even before the pandemic began. Was doing.

“We also need to step up the rest of the private sector chain,” Mr Biden said during his address. “It’s not called a supply chain for nothing. That means terminal operators, railways, trucking companies, shippers and other retailers as well. Moving our supply chain forward will continue to be the focus of my team.”

Credit: www.independent.co.uk / supply chain

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