.Supply chain challenges continue to worsen
Supply chain challenges continue to worsen, aggravated by higher levels of port congestion. Shipping delays at ports in Shanghai and elsewhere in China due to Covid-19 lockdowns.
The COVID-19 pandemic poses significant challenges for supply chains globally. Stopping the flow of raw materials and finished goods, disrupting manufacturing as a result. Moreover, it has accelerated and magnified problems that already existed in the supply chain.
Congestion at Chinese ports increased in March and April due to Covid-19 lockdown measures in Shanghai. Later extended to other parts of the country. Since the beginning of March, total dry bulk congestion levels at ports in mainland China have increased between 30-40%, according to S&P Global Commodities at Sea. The port congestion at Shanghai has shown signs of easing in May. Due to traffic ports have alternative throughout northern and southern China. However, overall congestion levels remain high and longer vessel queues are at alternative ports. Port congestion and container capacity have been extremely bad in China and the US but remain a global issue. Reuters reports that delays in shipments from China to Europe are subsequently causing shortages of containers to take European goods to the US East Coast.
Supply-chain resilience is critical to economic recovery in Nigeria. An effective supply chain system ensures higher efficiency rates, quality over control, better customer relationships and service, a faster production cycle, reduced production costs, and an overall improvement in the financial performance of a company.
To mitigate the impact on business activities from COVID-19, players in the logistics, transport and supply chain industries must deploy innovative measures in inventory management and distribution, and engage in strategic partnerships with players and intermediaries across the value chain.
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