German trade body warns of huge supply chain disruption over Omicron -Breaking
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© Reuters. FILEPHOTO: Containers loaded on a container ship at the Hamburg shipping terminal, Germany, September 18, 2014. Picture taken September 18, 2014. REUTERS/Fabian BimmerBERLIN, (Reuters) – Germany’s BGA trade organization warned Wednesday that massive disruptions in supply chains could result from the spread of Omicron variants of the coronarvirus. But they said it was unlikely for supply chains to collapse long term.
German Industry has suffered from shortages of microchips. However, rising numbers of coronavirus cases have clouded the outlook for retail at the beginning of 2022.
Funke reported that Dirk Jandura from the BGA stated, “There’s no chance of collapse. But there’s a significant disruption to the supply chain — at least temporarily.”
While many wholesalers across the globe have made their supply chain more flexible, disruptions of global delivery networks could still happen, he stated.
Jandura stated that “you cannot fully protect yourself against a worldwide pandemic,” and called for support from the government through lower electricity and energy prices, and other forms.
According to the Robert Koch Institute for Infectious Disease (RKI), Omicron is now responsible for over 44% of Germany’s coronavirus cases. Germany had 45,690 reported cases of coronavirus infections on Tuesday. This is 49.5% less than last week.
The German government tightened the regulations for bar and restaurant visits to reduce the risk of a disruption to critical services.
Germany’s Chamber of Commerce (DIHK), welcomed new isolation regulations, but expressed concern about the growing number of infected workers in logistics, already facing staff shortages. It also warned of potential consequences for the food retail and medical sectors.
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