As The US Shutdown Drags On, The Threat To Supply Chains Grows

“Initial repercussions for logistics from the US government shutdown have been slight so far, but the prospect of lingering paralysis is raising fears of severe supply chain disruption that may take a long time to mend.

The shutdown means no funds for affected departments, about 25% of the federal government. As a result, about 800,000 government employees are furloughed or working without receiving their salaries.

With every passing day, fears are growing that the shutdown will hit supply chains. Mr Slangerup warns that front line government workers are deprived of support from their shuttered departments.

“Officers work, but over time, if you take away their support infrastructure, it will create cracks. Then you see a snowball effect on customs officers’ ability to respond,” he said. Likewise, air traffic control cannot work for a long period of time without support, he added.

“Long term, it is going to fracture the infrastructure for both ocean and air, regulatory and clearance,” he said.”