This year was very uncertain and unpredictable in many fields. Specific events were disruptions that affected supply chain in 2021. That represents a long-term danger for businesses, especially in our highly globalized age, when organizations often have big and complex chains. In order to have resilient supply chains, companies need to focus on preparing for future devastating events. The national shipping company of Saudi Arabia will discuss these problems with you.
The COVID-19 pandemic
The coronavirus left a mark on many lives. Except that, it is one of the biggest disruptions that affected supply chain in 2021. Everyone is still facing extraordinary problems. Bussines slowed down, and a lot of people lost their jobs. Furthermore, late delivery or a lack of supply of goods or labor were caused by pandemics. It also has legal consequences, and many companies are seeking help on how to deal with it. Despite the discovery of new vaccinations, many people are still unsure how recovery will go. But, transport companies in Riyadh will make sure that everything will go smoothly and without problems.
The blockade of the Suez Canal is one of the most significant disruptions that affected supply chain in 2021
The Suez Canal is very significant for the economy and transportation. It’s an extremely busy international trade route. In March 2021, one of the world’s largest cargo ships was blocked there for six days. Ever Given obstructed the way for other vessels and freighters. There was no option for other ships to avoid the barrier. Hundreds of them waited in line. As a result, it affected the financial market because the price of oil rose significantly. Also, goods were delayed as a result of the incident. Keep in mind that with using freight forwarder in Saudi Arabia, the whole process will be much easier.
The labor shortage arises from many causes. It affects all kinds of industries such as:
- Shipping industry
- Medical industry
The biggest reason is the pandemic which is happening for already two years. The proclamation led to increased automation in response to the rapid change in labor market conditions. Some employees are unable to return to work because they are caring for family members who are sick with COVID-19, or they are ill themselves. More people are willing to quit their jobs or change careers. All parts of supply chain, such as freight forwarders in Riyadh, represent one big connected whole. There is a big crisis in Great Britain because they are in shortage of professional truck drivers. Problems like these can negatively affect related businesses and companies.
The global market is shaken in every sense. Disruptions that affected supply chain in 2021 are numerous and they left many negative consequences. In order for companies to increase their resilience, they need to commit to good assessment and strategy. Unfortunately, the global supply chain crisis will probably take much longer than we think.