Problems are growing in Greece's supply chain and business operations due to the lockdown and drastic travel restrictions imposed in many countries as part of efforts to contain the spread of the pandemic.
Business officials point out to BusinessDaily.gr that disruption to economic activity and trade flows is unprecedented as many companies struggle to keep the production process alive, while others are forced to shut down because of shortages in raw materials.
Sources warn that if the current economic conditions continue beyond April and governments do not quickly find solutions to restore trade flows, consequences will be widespread.
Supermarkets are already seeing some shortages of imported goods, but they are limited. Industry officials say that supplies on basic goods are considered to be at satisfactory levels and that there is no reason for consumers to feel concerned about supply levels.
However, the big risk relates to domestic production due to a shortage of raw materials and other products needed for production.
Road transportation is posing big problems as many drivers refuse to work in areas hit hard by the pandemic, such as Italy and Spain, weighing on exports and imports. This is creating shortages in animal feed, liquid proteins and enzymes from Bulgaria, Romania, Slovenia, and other products needed for both domestic poultry and livestock.
Due to border restrictions, a truck entering a country must remain in quarantine for two weeks before continuing its journey to obtain cargo and then return to Greece, possibly facing further delays. In some cases, there is a shortage of drivers who do not want to spend such long periods on the road or fear for their health.
In other cases, there is a shortage of workers at factories, with many plants attended only by security personnel. Delays are also occurring at border controls, which are particularly strict in some countries.
Similar problems have arisen with exports. Large verticalized industrial units that have raw materials and export almost all of their production, such as aluminum industries, face insurmountable problems in sending orders abroad.
Problems at sea and air
Major difficulties have also arisen with air transport, for items such as medical supplies and fresh food goods. As industry executives note, many airlines have grounded their planes, meaning that transporting goods by air takes twice the amount of time needed previously, which stood at about two to three days.
At sea, the biggest problem is a lack of containers for shipping products, with shortages estimated to be in the tens of thousands for Europe and the US. Shipping companies are struggling to load equipment because of problems caused earlier this year in China, where thousands of containers have been stranded. There is also an issue with the lack of crews as worker supply levels are low.
Many companies have been improvising to acquire supplies, by seeking alternative transport routes or relying on "heroic" efforts by workers. This, however, is bumping up costs and raising uncertainty in times where liquidity conditions are tight.
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