Global supply chain disruptions are spreading

**Hawkeye10** · 10-02-2021, 02:15 PM

Global supply chain disruptions are spreading, and nobody knows what to do about it

A Washington Post article by David Lynch highlights what is going on. Lynch notes that the commercial pipeline that brings $1 trillion of toys, clothing, electronics and furniture from Asia to the U.S. is clogged, and no one knows how to unclog it. The median shipping cost for a container from China to the West Coast recently quadrupled to a record $20,586. He observes that “essential freight-handling equipment too often is not where it’s needed, and when it is, there aren’t enough truckers or warehouse workers to operate it.”

The New Yorker’s Amy Davidson Sorkin explains why the ports of Los Angeles and Long Beach reached the point last week where more than 70 container ships were idling offshore. She writes that labor shortages are at the heart of the problem, as there aren’t enough dockworkers to unload cargo or truck drivers to move the contents to distribution centers: “Just in time delivery works only if you can deliver.”

The bottom line is that supply disruptions were initially tied to shutdowns of businesses when the pandemic hit. But since then, they have spread to a much broader spectrum of areas and are proving more difficult to tackle.

https://thehill.com/opinion/internat...-knows-what-to

I have been avoiding talking about it because I dont want elevate my "Doom and Gloom" reputation, but it is time. Stuff is going to get harder to find at least through most of next year, when you do find it it will be more expensive, and we are already under a depression watch....this sure does not help.

Buckle Up.

**Hawkeye10** · 10-02-2021, 04:20 PM

I think I am noticing that as consumer goods go into shortage they get pulled from the stores, they are only available online, sometimes only on Amazon.

At inflated prices NATCH.

**Hawkeye10** · 10-02-2021, 04:20 PM

I am certainly in stock up mode.

I am working on light bulbs today.

**Hawkeye10** · 10-02-2021, 04:43 PM

Remember that I warned you a long time ago that the claim that inflation will be a blip was a lie....I mean I am not an expert but it was obvious....and I was warning that hyper inflation is a real possibility.

We are certainly moving into sustained major inflation, and societal break down overall.

Buckle Up.

**Guno צְבִי** · 10-02-2021, 04:51 PM

Since industry went for just in time, no one is holding inventory buffers, I saw this coming over 20 years ago when JIT was being pushed

**Hawkeye10** · 10-02-2021, 04:53 PM

Originally Posted by guno

Since industry went for just in time, no one is holding inventory buffers, I saw this coming over 20 years ago when JIT was being pushed

Me Too.

Now we are very near outright collapse....if China does not get their energy situation fixed very fast we shall have it.

EDIT: Ditto for very long and complicated supply chains...implemented to save a few bucks.....Cheap was all anyone cared about.

**Hawkeye10** · 10-02-2021, 05:02 PM

China now has about 250 ships waiting for port space, Southern Ca about 70.....that is just catastrophic.

**Hawkeye10** · 10-02-2021, 05:15 PM

Aug 24

One in 20 bulk carriers caught in China port congestion
Lloyd’s List Intelligence data shows some 5.7% of global fleet of 11,850 bulk carriers is at anchor, underpinning soaring rates

https://lloydslist.maritimeintellige...ort-congestion