Germany warns of massive supply chain disruptions

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Germany warns of massive supply chain disruptions

Containers are loaded onto a container ship at a port in Hamburg, Germany on September 18, 2014. REUTERS Fabian Bimmer

Germany's BGA trade association warned on Wednesday of massive supply chain disruptions due to the rapid spread of the highly infectious Omicron variant of the coronarviruses, but said a long-term collapse of supply chains was unlikely.

The German industry has been hit by shortages of microchips and other components, while rising coronaviruses are weighing down the outlook for retailers at the beginning of 2022.

BGA President Dirk Jandura was quoted by Funke newspaper group as saying that there was no risk of collapse but of a massive disruption of the supply chain.

He said that disruptions in global delivery networks could still occur, although many wholesalers around the world have made their supply chains more flexible.

Jandura said that you can't cover yourself fully against a global epidemic and that government support is needed through lower energy and electricity prices and other forms of help.

Omicron now accounts for more than 44% of the coronaviruses in Germany, according to the Robert Koch Institute RKI for infectious disease. Germany reported 45,690 cases on Tuesday, 49.5% more than on the same day a week ago.

The German government tightened the rules for restaurant and bar visits and shorten COVID- 19 quarantine periods because of concerns that the new variant could bring critical services to a halt.

Germany's Chamber of Commerce DIHK welcomed the new isolation regulations but said it was concerned about a growing number of infections in the logistics sector, which is already suffering from staff shortages, and warned of the consequences for food retail and medical production sectors.