Don’t Expect a Merry Christmas – expect shortages in stores

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  • #243268

    Nearly half a million shipping containers are stuck off the coast of Southern California as the ports operate below capacity

    The largest port in the US faces a near-record backlog of cargo ships, and there’s no end in sight.

    How many are we speaking of?

    On Tuesday, Los Angeles had nearly half a million 20-foot shipping containers – or about 12 million metric tons of goods – waiting in drift areas and at anchor for spots to open up along the port to dock and unload…

    How many ships are that?

    The ports had 90 container ships in the port, 63 of which were waiting off the shore on Tuesday – a number far above the ports pre-pandemic average of zero to one ships at anchor.

    So what is causing this backlog?

    The ports are only operating at 60% to 70% capacity…

    while…

    …two ports are closed for several hours most days, as well as on Sundays – making it more difficult to keep pace with the ports in Asia and Europe that are sending the goods on a 24/7 schedule.

    What else?

    Gene Seroka, executive director of Port Los Angeles, said longer hours do little to address the backlog when truckers and warehouse operators have not similarly extended their hours. It’s not optimal for truckers to pick up loads at night, especially when they’d have to find alternative places to store the goods when the warehouses are not open at night.

    And…

    What’s more, many warehouses near the West Coast don’t have space for the goods. About 98% of warehouses in Southern California’s logistics-heavy Inland Empire region are fully occupied, while the entire Western U.S. has a 3.6% vacancy rate…

    So what is the problem?

    A struggle to hire enough workers has had a tremendous impact on the transportation industry nationwide, causing headaches at ports, warehouses, railways, and trucking. Many companies have fewer workers than before the pandemic but face significantly more work.

    How long is this expected to last?

    The supply chain snarls are expected to create major issues for holiday shoppers. Executives have warned the shipping crisis will continue into 2023.

    I keep hearing that it is OUR fault for buying things on-line instead of from a store.

    But even from a store, the product has to get there?

     

    And so long as we have governments (both at the federal and state level) that pays people more to stay at home than working, you will never get enough workers, yet alone getting them trained to fill the job openings that are in demand.  And those that are trained, being told they can’t work those jobs because of certain mandates.

     

    #243298
    Vknid
    Moderator

      There is VERY little we see in front of us, especially on such a macro level, that is not intentional and planned.

      #243316
      Mustangride1
      Moderator

        This is a failure again in the education sector of life and political period.

        When I was in school I learned the law of “supply and demand” business around the world know it and adjust for it as product sitting is loss revenue. People need to understand it is NOT repeat NOT lack of facility or lack of Truckers etc etc. They had them precoof and still do, the truckers and storage facilities were working night and day precoof and still can. Hell in SOCAL truckers preferred to work at night as it was less time in traffic which eats up gas which takes from profit…

        What this is, is as we have seen for decades, purely political to hurt the public by Democrats!!!! That is a fact. What those ships should be doing is instead of sitting for months on end loosing profit is to head south go through the canal and come up to Texas and Louisiana and Florida. Cut out the California lies and excuses and get the products rolling.

        Or better yet, all those companies come back to the US….. Make the stuff here and create careers with retirements and medical benefits etc again…. Which is how you put this nation back to work and give people the chance at owning a house, having a good life and making good incomes. But Democrats do not want that, this is why the tax rate on business is so high.

        #243318

        @Mustangride1 you just explained WHY that will never be done under a demented dem’s admin.

        Now, if the CCP attacks Taiwan (after the CCP olympics), then the west can cut off all trade, and force companies to make their products domestically.

        But since the dems ARE the CCP party in the us, I doubt even that will happen.

        #243325
        Vknid
        Moderator

          We cannot cut ties with China immediately, there is just no way. Our economy would fall apart. It would take several years to ween ourselves off China and start making stuff on our own again. But I think doing so would do 2 things. Drive up prices but also a new economic boom in the US. Yeah, some of your stuff will cost more. But it will also be made FAR better. Things would start to last again.

          I am not disagreeing with the move, just the time frame. This is something we should do before China owns/runs the world. And we are not far from that now.

          #243343
          Mustangride1
          Moderator

            In ww2 we were able to go from minimal production to ungodly production in less than 2 years, this was without any of the plants already being in place. We have the plants, yes many needing upgrading and retrofitting along with make-over. But the structure is there. I would say maximum time frame to start producing many things here would be less than 1 year.

            We have the Natural resources for many things and the Chemical resources for others. We have the infrastructure to get them to factories. If the Government was to loosen EPA and other restriction for a period of 2 years to allow for production to begin while retrofit and remodeling of the plants happened 1 year is very doable.

            Now cost wise, If you are using our resources or those from the “Americas” then cost is kept a little low from that. Wages Certainly will play a role with no doubt. However that as well can be reduced. Lowering the Taxes on Business and employees. (Let me explain something Business DOES pay taxes on employees) I do not want to get in to that in detail here, but they do. Lowering business tax to 10% FEDERAL and 10% State maximum (states can make deals if they want) this will lower the cost even more.

            You drop the cost in taxes by 20% almost and reduce costly regulations then those business will have no reason to be overseas.

            #244283

            Biden solution:  Just work 24/7.

            With no workers?

            With no trailer chassis to put the freight containers onto?

            With no truck drivers to move the containers to warehouses?

            To warehouses that don’t have workers, and are not open weekends/overnight?

            To trains that don’t have the workers?

             

            Once again, the Biden WH is all talk, but when it comes to actually solving problems, they are not able to do so.

            How will the get those workers?

            Who wants to work those jobs?

            Can the businesses afford the wage/benefit demands of those workers?

            Who will pay for all this?

            #244289
            Vknid
            Moderator

              “Once again, the Biden WH is all talk, but when it comes to actually solving problems, they are not able to do so.”

              It’s not he/they are all talk. They are doing EXACTLY what they intend to do, they just tell lies about it.

              Take the border for example. Is the border broken? Yes. Is it because policy failed? No, it’s because what’s going on is EXACTLY what they want to happen.

              Also, anyone expecting Biden to fix all the problems he helped to INTENTIONALLY create is an absolute moron. And no he is not the only one.

              Almost everything is going as the communists want it to.

              #244290
              DigiCat
              Moderator

                The Biden who stole Christmas

                And then the Grinch sued Biden for copyright infringement 🎄

                #244329

                Out-of-touch Biden threatens private sector companies as polls nosedive

                President Biden has figured out how to fix the supply chain problems that are pushing prices higher and frustrating consumers. His solution?  Threaten the private sector.

                Bravo.

                “If the private sector doesn’t step up, we’re going to call them out and ask them to act.”

                People have been calling out the government for ages to act on tons of issues.  Still waiting.

                In other words, Biden suspects private corporations of not working hard enough to satisfy customers’ needs in a timely manner. He seems to think that retailers are content to have bare shelves come Christmas, and that shipping firms don’t worry that they will not get goods delivered to their destinations on time.

                What on earth is he talking about?

                Have you even looked at your employment numbers?

                Since, as usual, Biden took no questions from reporters after his remarks, we will never know.

                Because the so-called leader of the us has no answers.

                Maybe Biden is simply ignorant of how businesses operate since he has no real-world private sector experience. He has never run a store, solved logistical challenges or met a payroll. He doesn’t appreciate what makes CEOs sweat or know how to incentivize business owners.

                Ignorance is bliss. and dementia joe is very blissful indeed.

                But Biden is not blameless. He and the Democrat-controlled Congress have helped cause an outsized surge in demand by unnecessarily pumping too much money into an already-hot economy. They have also contributed to a shortage of workers that is plaguing every aspect of the supply chain. By rolling out benefits like extended unemployment pay, rent subsidies and increased food stamps, all offered with no work requirements, Biden and Democrats in Congress reduced the pressure to get back on the job.

                But that is all Trump’s fault!  Even a year after the fact, it is still all Trump’s fault demented joe is in the WH and that people around the world is calling out “let’s go brandon.”  When we all know what the slogan really is.

                In addition, the president’s vaccine mandate has caused truckers and other workers key to the movement of goods, already in short supply, to leave their jobs at the worst possible time.

                Just take the jab, man!

                Biden has not just crimped the number of people working; his administration has also intentionally raised prices…

                And inflation!

                Biden is stuck in the 1950s…

                And the US is stuck with him as well… and that laughing hyena as vp.

                Dumb and dumber!

                #245754

                The shipping crisis in California is now so bad that officials should consider declaring a state of emergency, the head of the California Trucking Association says

                Labor shortages along the supply chain, including trucking, had contributed to a “perfect storm” hitting ports, Yadon (Shawn Yadon, CEO of the California Trucking Association) said, per Fox Business.

                It is not just a trucking shortage.

                Before the pandemic, the ports’ highest record had been 17 ships waiting to anchor, Kip Louttit, the head of the Marine Exchange told Insider this week.

                And they just announced 100 ships waiting Monday waiting to dock and unload at those California ports.

                This week, the head of the American Trucking Associations told cnn that the country was currently lacking 80,000 truck drivers, a new record.

                And how about the railroad industry?  The warehouse industry?  Dock workers?  etc.

                So going 24/7 on the ports will accomplish what?

                We have a shortage of warehouse space, we have of shortage of empty chassis to load the cargo containers onto, we have a shortage of truck drivers to move those chassis to the warehouse/rail depos, etc.

                So how is this gonna be fixed again?

                #245806

                The US is running out of cardboard and packaging materials as the supply chain crisis drags on, making it harder for retailers to ship online orders

                Retailers in the throes of navigating the supply chain crisis will soon confront yet another hurdle – an even shorter supply of cardboard boxes that was already growing scarce.

                Merry Christmas it will be?

                Low containerboard and corrugated cardboard inventory has been a mounting issue since early this year, thanks to meteoric growth in e-commerce during the pandemic.

                Just one of the factors.

                “Brands often don’t have the means to resolve this fundamental issue in time for the holiday season, therefore they must be prepared for an increased amount of customer service inquiries around product inventory check, back order status, fulfillment delays, and increased second-degree inquiries that are caused by out of stock and fulfillment delay situations,”…

                So buy from your local businesses in-person.  Support local businesses!  And shop early to make sure you have the gifts before they run out!

                 

                #245878
                Vknid
                Moderator

                  My local grocery store is already about 25% bare. I am very concerned about the food supply at this point.

                  • This reply was modified 2 years, 6 months ago by Vknid.
                  #246115

                  The supply chain crisis could last into 2023 unless governments boost spending in ports, railways, and warehouses, a shipping exec warns

                  The CEO of one of the world’s largest shipping companies is calling for governments to step in and take action to fix the global supply chain crisis and prevent delays and shortages from rolling on beyond the end of next year.

                  So it is up to the government to fix your problems and make you more profits?

                  Jeremy Nixon, CEO of freight company Ocean Network Express, said that local governments need to increase spending on critical parts of the supply chain – including ports, railways, warehouses, and roads – to increase capacity and cope with ongoing demand. Ocean Network Express has a fleet of 220 ships and transports more than 6% of the world’s containerized freight, according to the FT.

                  Yay, I can see why you want the government to increase the supply chain, your business is entirely based on it.

                  “There needs to be some government support here to maybe switch people out of some parts of the economy where demand is not so strong to more critical parts of the economy where the demand is very strong and important for global supply chains,”

                  Are how are you going to force people/employees to do this?

                  “If we get a bad jam up in July, August, and September of 2022 in North America that could well last late into 2022 and early 2023,” Nixon said.

                  So if the ports are a big issue, why not MOVE the manufacturing within the nation.  You bring back good paying jobs, getting more people earning money and taxes, and spread out the bottleneck that are the port systems.

                  #246723

                  Amazon’s holiday-quarter forecast disappoints as labor, supply issues mount

                  Amazon.com Inc on Thursday reported a slump in profit that it expects will continue through the holiday quarter, as heavy spending to maintain delivery operations diminishes the company’s windfall from online shopping.

                  How bad is that?

                  The company said it expects operating profit for the current quarter to be between $0 and $3.0 billion, short of $6.9 billion Amazon posted the year prior.

                  ZERO!  What caused this slump?

                  In a tight labor market, it has boosted average pay and marketed ever bigger signing bonuses to attract blue-collar workers it needs to keep its high-turnover operation humming.

                  The company meanwhile is contending with global supply chain disruptions. To manage, it has doubled its container processing ability, expanded its delivery service partner program and is ramping up its warehouse investments.

                  Welcome to 2021 Amazon!

                  The retailer has strived to prevent a repeat of the 2013 season when delays left some without presents on Christmas Day.

                  Well, not only can you not ship on time do to shortages, there is no guarantee the container(s) will even get to the distribution centers in time to get it to your doors before Christmas Day.

                  And if not for them having stocked up early for shipping supplies, their might not even have enough supplies to package your purchases in.

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