It’s been challenging for countries trying to recover from the pandemic. Virus variants continue to spread, and while vaccines are being steadily distributed in larger nations, some countries have limited or no access to vaccines.
COVID-19 outbreaks and extreme weather continue to disrupt car supply and prevent automakers from delivering vehicles.
The impact of natural disasters and extreme weather
These slowdowns are likely to continue into the next year. Some companies have estimated that these issues won't be resolved until March, at least in Asia.
Another obstacle for automakers trying to improve supply
Extreme weather has been yet another challenge that prevents automakers from improving car supply. This, along with other obstacles brought on by the pandemic, has made it hard for China and other countries to revive their economies.
The Delta variant is especially devastating in Asia. It has led to land access being cut off from sailors, leading to exhausted crew members and some ships being stranded. Ships currently transport about 90% of trade around the world.
Worldwide ports experiencing jams
Worldwide ports are also experiencing unprecedented congestion. Union Pacific, which manages freight railways in the U.S., suspended all cargo shipments for seven days in Chicago. This will force some companies to use sea transport instead, which is already an overloaded system.
The global supply chain is being driven towards a breaking point. Consumers are urged not to panic-buy while countries work to manage disruptions.