Supply Chain Problems Short term or Not

www.yahoo.com...

The commercial pipeline that each year brings $1 trillion worth of toys, clothing, electronics and furniture from Asia to the United States is clogged and no one knows how to unclog it.

On Sept. 1, 40 container ships belonging to companies such as Hyundai, NYK Line and Evergreen were anchored off California, waiting for a berth. (Less than three weeks later, the number reached 73.) Some vessels sit for two weeks or more, effectively cutting capacity on trans-Pacific shipping lanes and driving up costs.

This is just one little quote, but the whole article is pretty eye opening. Sounds like a big unorganized mess.
My question is do you think this will be a couple of hiccups that will pain us for a year or two, or will this be something that stays for a long time?
New normal (gosh I hate that saying).

I do think that “cheap” goods will no longer be cheap anymore. Just like with Amazon prime, notice how they got everyone hooked and they pulled the two day shipping out from under everyone.
Does this mean that we need to start making our own product again? The amount we import is shocking.
😳

a reply to: JAGStorm

I've been in Logistics for 30+ years, and it is not uncommon for containerships to sit off the coast for a period of time, ESPECIALLY during the 4th quarter (think Christmas shopping). EVERY retailer has their orders scheduled for Black Friday, and all of them want to have their inventory in place before the big day. HOWEVER, this is not something that is sustainable, and shortages will absolutely occur if the issue is not resolved.

One thing about transportation/logistics, is that the shorter supply chains ALWAYS are more sustainable than long ones. Buy local, support your local businesses and agricultural suppliers, and you will rarely if ever be without (unless of course, you're looking for cheap Chinese crap).

a reply to: Nunyadambizness
I agree that we should all be buying locally and not the cheap crap from China but there is a much bigger issue than not getting toys, clothes, electronics, etc. Parts and materials needed for the US companies to make whatever they make are on those containers. I work for a company that sells promo items to colleges most of my suppliers have inventory in the US and they decorate it here. They have depleted their inventory and their new inventory is setting on a boat off the Westcoast. I started telling my clients that there were no guaranteed "in hand" dates due to the issues on items that aren't made and decorated in the U.S. to get them to buy American Made but within the last two weeks, I have started having issues with not being able to get the American made stuff such as magnets. I use a company out of Kansas for custom magnets. The magnetized material comes from China and they cut it to requested shapes then apply a layer of vinyl printed with the requested logo on one side of the magnetized material. They've run out of the magnetized material and cannot get an answer on when they will receive their stock. I also have a friend that is building a home who has been waiting on windows since June. The windows she ordered are made here but a plastic piece of the frame is made in China. Convenient stores are out of large cups, lids, and straws. I think this is a whole bigger issue than we realize because there have been plenty in the warehouses in the US but now the warehouses are depleted. I have sold a couple of orders that are made in China and had them flown in.....the freight is higher than the product so that's not really an option.
Do you know why the ships aren't being unloaded? I have heard and read a couple of different things....

I work in Engineering and product design at one of the worlds largest companies bases in the US. What a cluster, chips are just the most obvious issues.

Plastics are a mess having to test for new suppliers.
Rubber products the same.
Many different chips just being withheld in my opinion.
And believe it or not China doesn't care I sat in on a meeting the other day when it ended we decided look to the US suppliers because at least they will listen. Our China supplier laughed and said he didn't really need our millions of parts a year.
Clown World everywhere.

Not to mention people working from home that we are cutting pay to because we can't contact them. Or limited and no real work.

a reply to: JAGStorm

I read / heard the other day that Walmart, Costco and Target are chartering their own ships.
What i don't understand, yea they maybe able to do that, but what about the containers they need to ship their goods in and where the hell are they gonna put in unless they go old school and just leave them on pallets? My understanding due to the back log of ship in the ports, there is also a container shortage.

And all the ports are backed up and there is a labor shortage how are they gonna just waltz right up and push everybody else aside?

Can somebody tell me if 40 container ships off California is pretty average please? If this is way more than normal then I would be asking what's on those ships!
Rainbows
Jane

a reply to: JAGStorm

Back in March of 2020, under a different username, I commented that the world-wide economic "shutdown" attributed to the pandemic was like slamming an automobile going 150MPH into a solid concrete barrier; the resulting damage would never "just buff out", we would never "get back" to the normal we once knew.

That shutdown has shown us the weaknesses inherent in the system we placed far too much of our livelihoods', not to mention, our lives, in. And those weaknesses have come back to bite us, hard in our collective behinds.

Those who long for "The Old Normal, Again" are like children crying over the ice cream cone dropped, and melted on the hot sidewalk of a summer afternoon.

We must face a new paradigm, a new, and yes, at times more difficult future.

Unfortunately, it's a future that doesn't really care if we "like" it or not; drop your cone and you'll just have to go without.

Guess it's time for all of us to grow up....that's why there's alcohol!

This administration is total blame for this. They have no sense for business and ignore all warning signs until it is too late. Irregardless of the pandemic, there is a great deal of purposeful interference as well to cause problems for local businesses and the consumer resulting in higher costs.

If Trump was still here, this would not be an issue. He also warned what would happen if we did not bring some of our essential production back to the US and was making great progress in that area. As soon as the crazies got control of the country,... well this is what we are stuck with now until we do something about it.

a reply to: angelchemuel

It's very unusual, here's a good article dated Sep,28th.

Just how many containers of cargo are stuck off California’s coast?

a reply to: TomCollin
Thank you!
Rainbows
Jane

a reply to: angelchemuel


Your welcome.

a reply to: TomCollin
So we should be asking why so many ships and what's in them then, no?
Rainbows
Jane

a reply to: angelchemuel

Is there something that's been on back order? That's what's in them.

a reply to: JAGStorm

The container ships are just a part of problem. U.S. manufacturers are having a worker shortage and that also effects things like canned vegetables and cereal. We also have the truck driver shortage in the U.S. Then there is the farm worker shortage.

There are also other factors, like the wheat crops having a bad harvest year. That'll cause breads and other grain products to at least go up in price. Pumpkins are also being threatened by P. capsici blight.

a reply to: angelchemuel

i think it's the same goods that are bought everyday, electronics, household goods, stuff that American owned companies have made over seas, you name it chances are it's on one of those ships. I firmly believe that it's more of a labor shortage in all sectors that have to do with shipping, mandates and CA screwed up idea of still sending out stimulus checks that's causing the problems.

a reply to: JAGStorm

im beginning to think what this is all about is that American companies love Chinese cheap slave labor. however what they dont love is losing control of their companies and intellectual property trade secrets when they outsource.

Solution bring back manufacturing to the US .

problem is that us work force is to well compensated and pritected.

interim solution destroy middle class, way of life and bring in more cheap foreign slave labor to do the jobs congress is paying americans to not work

solution: crash americas economy and middle class till they are desperate enough to become slave cheap unprotected labor Force.

end goal : cheap slave labor in america because it gives the US oligarchy more conteol of their trade secrets and intellectual property rights.

remember 15 years or so ago when Walmart was spending billions to bring back jobs to america. this is likely it ladies gentleman . however they need us desperate enough to do the jobs as slaves and for the us economy to crash.

People by and large have created a global crisis of too many wanting to be on some form of social welfare with no finish line. The shipping container problem is not the "thing" like many things happening right now. The apex of our problems is actually the people complaining about it.

It is the people that vote for politicians who promise them more and more benefits. If any politician tries to say wait a minute it is highly likely they will not get elected. The politicians at that point say fine. Want more stuff then we will give it to you. Food, healthcare, housing, higher wages, free school for worthless degrees. Whatever you want. Basically greed out of control with no end in sight. The politicians will even glorify obesity, UBI, and shame anyone that does not want to give it too them to keep getting elected. Whatever the people want.

Unfortunately. it's now way beyond the point of fixable. Western governments are now getting scared. If they don't do something the people are going to just start taking things they want which is actually beginning to happen. Try to jail these people and they vote to defund the police...meh. There are some decent protest going on to get control of the problem but the protests are small compared to the massive amount of people wanting free stuff so the protests fail.

Only solution is to de-populate and get the free loaders under control. Very strict control. I don't know what is going on with the vaccines but something is absolutely going on with that situation. It looks like the elites are fattening them up real good before they move on them.

The shipping issue looks interesting but it is not. The politicians gave the people exactly what they wanted. Lots of free money to sit around and do nothing but buy stuff they wanted so here we are. Not enough real workers to supply it to them. It will be clear when the next job report rolls out. More on welfare once again imagine that.

a reply to: TomCollin
Thank you again. I suppose they have been piling up for a while as these things do and only becomes 'visible' as a problem when it gets to this point.
Rainbows
Jane

Hmmm... I remember someone not long ago highlighting the manufacturing dysfunction in this country that has put a broad cross section of commerce in peril, everything from electronics to clothing to building materials to motor vehicles.

But he sent Mean Tweets so we just ignored that message, and instead elected someone with a past history of doing nothing but continuing the status quo with China.

I believe there is a German word for this: schadenfreude.

Wonder how much of the 2T$ (or is 4T$, or 6T$??) "BUILD BACK BETTER!" boondoggle will end up in China's coffers.

How much of the multi-TRILLION $$$ boondoggle is going to remediate the issue that 90% + of the US supply of antibiotics are produced in China?

Did AOC or Bernie draft any provisioning in "BUILD BACK BETTER!" boondoggle to address this, or maybe the barmaid
knows how to mix up bathtub penicillin?

Should be interesting times ahead when people figure out how flucked we are.

But take solace, as your blood pressure medicine supply runs dry, know that Twiiter is a kinder, gentler place.

Cargo ships stalled and stopped while migrants flow with little restrictions !!

Just wait for these cargo ships to start sinking any time now 😃