TOP g7 trade ministers meeting in London said they have no remedy to fix supply chain problems afflicting world transport saying the causes were beyond their reach, Reuters reports.
US Treasury Secretary Janet Yellen described the phenomenon as a 'very, very unusual shock' that shifted spending away from services such as travel, lodging and restaurants. 'Instead, we've been gobbling up goods and commodities like we've never seen before,' she said.
Said Berkley Research Group managing director Harry Broadman, a former US trade official: 'These officials have very few arrows in their quiver to address this problem. This is ultimately driven by consumer demand.'
With demand and supply out of sync and the logistics struggling to catch up, it could take up to six months for many goods shortages to ease, he said, with much of the shift brought about by market forces and private sector firms filling the gap.
US President Joe Biden last week announced new 24 hour-a-day port operations in Los Angeles and called on private sector logistics firms to 'step up' along with big retailers such as Target and Wal-Mart to speed goods to shelves in time for the Christmas holidays.
US Republican lawmakers urged Biden in a letter to 'address the global supply chain and ports crisis before Congress even considers any additional social spending and taxation legislation.'
International Monetary Fund European department director Alfred Kammer said policymakers can take steps to try to ease transportation bottlenecks, but strengthening supply chains will require investments in infrastructure and diversification of sources of key components.
UBS economist Paul Donovan noted that US consumer spending on durable goods was up 25 per cent, but won't last.
'Once the pent-up demand has been satisfied, there is no further need to spend. The person who has bought a new washing machine this year does not rush to buy another new washing machine next year,' he said.
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US Treasury Secretary Janet Yellen described the phenomenon as a 'very, very unusual shock' that shifted spending away from services such as travel, lodging and restaurants. 'Instead, we've been gobbling up goods and commodities like we've never seen before,' she said.
Said Berkley Research Group managing director Harry Broadman, a former US trade official: 'These officials have very few arrows in their quiver to address this problem. This is ultimately driven by consumer demand.'
With demand and supply out of sync and the logistics struggling to catch up, it could take up to six months for many goods shortages to ease, he said, with much of the shift brought about by market forces and private sector firms filling the gap.
US President Joe Biden last week announced new 24 hour-a-day port operations in Los Angeles and called on private sector logistics firms to 'step up' along with big retailers such as Target and Wal-Mart to speed goods to shelves in time for the Christmas holidays.
US Republican lawmakers urged Biden in a letter to 'address the global supply chain and ports crisis before Congress even considers any additional social spending and taxation legislation.'
International Monetary Fund European department director Alfred Kammer said policymakers can take steps to try to ease transportation bottlenecks, but strengthening supply chains will require investments in infrastructure and diversification of sources of key components.
UBS economist Paul Donovan noted that US consumer spending on durable goods was up 25 per cent, but won't last.
'Once the pent-up demand has been satisfied, there is no further need to spend. The person who has bought a new washing machine this year does not rush to buy another new washing machine next year,' he said.
SeaNews Turkey