DHL Freight Chief Warns Worldwide Supply Chains Won’t Recuperate to Pre-COVID Levels within 2023

“It’s not going to go back to 2019”

The key question remains when global supply chain congestion will relieve worldwide.

That’s a difficult query to answer, though the head of DHL’s freight-forwarding unit sheds color on when he believes bottlenecks will certainly abate.  

“ It’s going to  ease in 2023 , but it’s not going to return to 2019, ”   DHL Global Forwarding, Freight Ceo Tim Scharwath told  Bloomberg .  

“ I don’t think we’re going to go back to this particular overcapacity situation where rates were very low. Infrastructure, especially in the US, isn’t going to improve overnight, because infrastructure developments take a long time, ” Scharwath said.  

Supply chains in between China and US West and East Coast have already been easing since China’s ZERO Covid policy locked lower Shanghai earlier this year. But the current reopening of Shanghai can result, as explained by Goldman Sachs analyst Jordan Alliger, in a  backlog of goods flooding  shipping lane between  China to Mis Angeles/Long Beach port complex by  July-August .  

DHL’s Scharwath expanded on the Shanghai in china situation and how the production hub is “ wise to open up slowly to make sure that this particular clog goes out piece simply by piece and bit by bit to find the flow running. ”

Besides Goldman, Ca port leaders and the National Retail Federation are looking forward to a surge in imports in the coming months. To Scharwath’s point: supply chains will remain congested in the 2nd half of 2022.  

DHL’s freight key also said global supply chains have become more fragile:

“ Any stress you put along with it, doesn’t matter where in the world, will have influence consist of parts of the supply string, ” he said. “ Five years ago, the Korea situation wouldn’t have had an impact. Now it has. ”

.. and how to unclog  global supply chains? One of the ways is for the Federal Book to aggressively tighten interest rates and throw the largest economy in the world into a recession the coming year.  

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