German trade body warns of temporary disruption to supply chain by Omicron

On Wednesday, Germany’s BGA trade association warned of massive disruption of supply chains following the rapid spread of the highly infectious Omicron variant of the coronarvirus, while saying, long-term disruption to supply chains is unlikely.

A wide range of German industries have been hit by a shortage of components including microchips while a surge in coronavirus cases have clouded the outlook for retailers at the beginning of this year.

“There is no risk of collapse, but of a massive disruption of the supply chain – at least temporarily,” said Dirk Jandura, BGA’s President.

He went on to add, “Although many wholesalers around the world have made their supply chains more flexible, disruptions in global delivery networks might still occur”.

“You cannot fully cover yourself against a global pandemic.”

Jandura called on the government to lower energy and electricity prices and provide other forms of help.

According to data from the Robert Koch Institute (RKI), Omicron cases accounts for more than 44% of infections in Germany

On Tuesday, Germany reported 45,690 cases a rise of 49.5% from the same day a week ago.

Concerns that the Omicron variant could bring critical services to a halt, the German government has tightened rules governing restaurants and bars and has shortened COVID-19 quarantine periods.

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

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