Monday 16 May 2022

Quest and Sulayem

Fixing supply chain will take years: Sulayem

DUBAI, January 18, 2022

Even if the pandemic ended today, it will take another two years for the supply chain to adjust, to be able to remove the backlog of cargo, said DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem.
In an exclusive interview with CNN’s Richard Quest, he discussed supply chain disruption and the ripple effect of the Covid-19 pandemic.
The DP World Chairman spoke about the disruption in the supply chain cycle, explaining that manufacturing and port disruption caused the issue. 
He told Quest: “Usually you have a cycle, the cargo is put in an empty container, empty container is sent by a ship, reach Los Angeles, deliver, empty container goes back. Well, the problem is there is no empty container because all those containers are full, and it will take time for this to become empty.”
Sulayem clarified that the current problems were not a government issue: “I don't think so. It's not in the hand of government, it is basically supply chain problem. You know, when they opened the port in Los Angeles 24 hours, it didn't really help.”
The CEO said that DP World has performed well by investing in the whole logistics chain, not just carrying cargo, but owning ports: “We have been, I think, fortunate that we are farsighted in investing a lot in logistics. If you notice what we invested in the last six years, it is exactly what the shipping lines are today doing. 
“They are acquiring logistic facilities, warehousing, and distribution companies, we did that already and that is what's helping us a lot to deal with cargo to be able to move the cargo. Six years ago, we only the business we had inside the ports. Today, we are outside the port.”
Sulayem also warned that he believes shipping costs will remain high for the foreseeable future: “I am optimistic that we are taking steps, us and the shipping lines, to ease the congestion. But I don't believe the cost of shipping is going to reduce. I think, it will stay for a while.”-- TradeArabia News Service


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