Goodbye to the just-in-time model: how the supply crisis will change world trade

The problems in the supply chain do not stop growing.

The first warning came with the shortage of medical supplies at the beginning of the pandemic. In mid-2020 the chip crisis, which began that there was no PlayStation 5 or that car factories closed.

As if that was not enough, at the beginning of 2021 a container ship blocked the Suez Canal, putting in check a maritime transport that was already suffering from traffic jams.

Then the prices of energy, raw materials or food soared, and in the UK supermarket shelves were emptied. The problems now extend to all sectors and regions: they are in danger, from Christmas gifts to energy security.

To a large extent, this situation is due to the uneven recovery from the pandemic. The strong boost in consumption in developed countries thanks to vaccines and economic stimuli contrasts with weak government support and low vaccination rates in low-income countries.

Added to this are sudden changes in demand and new consumer habits, causing neither factories to keep up nor producers deliver their stock to warehouses, this over time will raise the price of products as they rise the demand that in turn will bring the crisis to the countries of Latin America and every corner of the world.