The global supply chains are threatening to break. Rising costs are threatening several large companies, a Danish newspaper writes.
A few days ago, the Danish newspaper Jyllands-Posten brought two articles spanning over two pages. In them, they concluded that the supply chains of some of the larger Danish corporations were under so much pressure, that it would damage them financially this year.
“The third wave of the corona virus is hitting the logistic chains. The latest up-tick in rates in May is yet another signal of the growing queueing in the chain. So far, the demand is so strong, that queueing does not look like it is going to get resolved anytime soon. It is only going to get worse,” says Peter Sand, who is a chief analyst with Bimco, a shipping lobby organization.
In Linak, another Danish company, they have increased prices with between 2 and 23 percent.
“This will pass. We just don’t know when. We have to keep on fighting, but it is a frustrating energy to use. We could spend this energy on a lot of other stuff instead of struggling with this,” says Bent Jensen, the owner and top boss of Linak.
Shorten supply chains
Especially the freight rates on goods coming from China are high right now, and in an ad for Ukraine Nu next to the double page article, Leif Midtgaard from ICT A/S who works with CIS-countries and Ukraine says, that the bottleneck will not be cleared before 2023.
The trouble with deliveries between the EU and China can turn out to be a positive thing for Ukraine. Ukraine is obviously a lot closer to Europe than China is, since it’s boarders are lining up with Poland.
“For many manufacturing companies Ukraine is like Poland but with lower costs, but the same qualifications and efficiency,” Bo Eske Nyhus, the investment director in NEFCO says in the same ad.