Suppressed global demand squeezing the global supply chain


SALT LAKE CITY – Store shelves are emptying, ports are backed up, the holiday shopping season is approaching. The mess in the global supply chain is likely to get worse before it gets better, says a Utah import / export specialist.

In 2020, when the pandemic struck, workers were sent home and their workshops closed. Demand started to ebb when coronavirus vaccines began rolling out. With government pandemic aid checks in their pockets and having finished staying home, consumers have flooded the stores.

Ships carrying cargo from Japan, China, South Korea and other countries are now lining up to dock in Los Angeles and Long Beach, California, and other U.S. ports.

Demand continues to increase worldwide

Miles Hansen, President and CEO of World Trade Center Utah, examines the global supply chain crisis and chats with Inside Sources host Boyd Matheson about how it happened and where this will.

“What’s the one thing we don’t think about when it comes to the supply chain? Boyd asked.

Hansen said it’s not just in the United States; countries around the world are also seeing pent-up demand from consumers who have also been sitting on government aid money.

He added that the pandemic has caused an increase in productivity around the world, which increases demand over time. Hansen predicted that this new peak in demand will continue for years to come.

“What do you see from the World Trade Center Utah in terms of how local businesses are dealing with this problem? [global supply chain crisis]? ”Boyd asked.

“If there is a moment to underline the fact that we do not have enough port infrastructure on the [West] coast is now, ”said Hansen.

He added that the global supply chain crisis highlights the importance of Utah’s Inner Port and its benefits to the North American supply chain.

Energy shortage on the horizon

“Anything else we should be watching for in the short term?” Boyd asked.

“This thing [the global supply-chain crisis] will probably get worse before it gets better, ”said Hansen.

He advised listeners to order well in advance, especially for holiday items. He added that another thing to watch out for is the energy shortage in China and elsewhere in the world.

“Coal is at an all time high. We are also looking at the shortages of propane, gas and oil. It’s going to have a ripple effect on the economy, ”said Hansen.

Internal sources with Boyd Matheson can be heard weekdays from 1 p.m. to 3 p.m. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app.

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