There are 44 container ships sitting off the coast of California that are unable to port and unload. This is a new record, eclipsing the previous record of 40 container ships back in February.
These ships define the global economy by transporting goods around the world.
So why are they unable to port and unload their goods?
Business Insider explains,
The queue is a result of the labor shortage, COVID-19-related disruptions, and holiday-buying surges.
We always have “holiday buying surges”, so we know that’s not really it.
Instead, it’s the labor shortage and COVID related disruptions.
It’s interesting to note, the Los Angeles and Long Beach ports account for about one-third of all US imports. So this is a big deal.
Check this out.
“To give you a real-life example of the kinds of challenges we’re seeing, one of our dedicated charters was recently denied entry into China because a crew member tested positive for COVID, forcing the vessel to return to Indonesia and change the entire crew before continuing.”
Michael Witynski, Dollar Tree’s CEO
Hey, what happened to quarantining the infected?
Witynski went on to say,
“Overall, the voyage was delayed by two months.”
So these are some of the reasons store shelves are running low, or the selections are not there if you are seeing some of that, but that’s not the only reason…
Labor Shortage
Yahoo news reports,
Some of the largest U.S. food distributors are reporting difficulties in fulfilling orders as a lack of workers weighs on the supply chain.
Why are there a lack of workers, we all know the answer, but let’s hear it from the professionals.
U.S. companies across industries are reporting a dearth of workers amid sweetened unemployment benefits, stimulus payments and a pandemic that has reduced the appeal of in-person employment.
I truly believe the sweetened unemployment benefits are a major driver of the problems we are seeing. Too many folks rather sit at home and collect free money than work. According to one estimate, 40% of unemployed Americans are making more money by not working.
Of course they aren’t going to work!
As for the other 60%, how many belonging to that group are making only a little less than if they worked 40 hours a week?
We do not have that answer.
Back to the food sector…
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The entire food sector is seeing “massive labor shortages,” said Benjamin Walker, senior vice president of sales, marketing and merchandising at Baldor Specialty Foods, a New York distributor. “Service levels are the lowest I’ve seen in my 16-year career, and it doesn’t seem like it’s going away anytime soon.” Finding truck drivers is “next to impossible,” he said.
Yahoo
So when is it going to end?
When Does It End?
I suppose when we stop paying people to sit on their rear end.
When we stop pretending like COVID is the Black Plague.
How about we hear it from, the professionals…
Speaking on the lack of electronic components and other items:
Executives expect the shortages and delivery bottlenecks, exacerbated by overwhelmed transportation networks and a lack of workers, to stretch into the fall.
WSJ
Speaking on shortages of everything:
“We have this vicious cycle of all the natural human instincts responding, and making the problem worse,” said Willy C. Shih, an international trade expert at Harvard Business School. “I don’t see it getting better until next year.”
DNYZ
Speaking on ocean bound cargo:
“Industry experts expect the ocean shipping capacity will normalize no later than 2023, when many new ships come online,” Witynski said.
Business Insider
The Heart Of The Matter
When we boil it all down, it comes right down to COVID-19.
- It comes down to the way governments have handled the perceived crisis.
- It comes down to the government handing out free money in extended unemployment benefits.
- It comes down to the government mandating renters cannot be booted for not paying rent.
However, the Supreme Court finally stepped up and put the kibosh to that by ending the governments illegal eviction memorandum issued under Trump and kept in place by Biden.
Government not only created the crisis we have been discussing, but the Federal Reserve and Government through monetary policy have created the inflation crisis as well.
Take a look at the latest BLS report.
Over the last 12 months, inflation rose 5.4%.
- New/used cars and trucks rose 41.7%
- Gasoline rose 41.8%
- Utility gas (piped) rose 19%
They have shelter at 2.8% for the last 12 months. There must be more to the story, it’s certainly gone up more than that in rent and house prices.
Have you looked at them lately?
And who is buying all these houses anyway since millions are on unemployment?
Perhaps, Wall Street?
I suppose things will get better when Americans demand they get better, until then…