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‘Companies are beginning to panic’: Experts say China’s lockdowns will make inflation and the supply chain nightmare even worse
Fortune ^ | 4/23/22

Posted on 04/23/2022 4:06:07 PM PDT by EBH

A supply chain nightmare

One in five container ships is now stuck at ports worldwide, with 30% of the backlog coming from China. And Lars Jensen, the CEO of the shipping container industry consulting firm Vespucci Maritime, told Fortune that the full impact of China’s policies will only begin to reveal itself over the coming weeks.

“Companies are beginning to panic. The downstream impact is coming, and it’ll be heavy.” John Bree, the chief risk officer at Supply Wisdom, said. “The latest China lockdowns combined with the Russia-Ukraine war is too heavy a burden. The global chaos is going to further exacerbate disruption and take inflation to a new level.”

Bree’s statement is backed up by recent reports from investment banks, which are also warning of the economic impacts of China’s lockdowns. Bank of America analysts led by Ethan Harris said in a note to clients on Friday that it’s yet “another adverse supply shock for the global economy” that will weaken growth and extend the period of high inflation.

And Dylan Alperin, head of professional services at the supply chain software firm Keelvar, noted that transportation costs make up 7.7% of global GDP, which means delays at ports typically lead to rising inflation.

“The freight cost for a single container from China to the U.S. went from $5,900 last year to $15,764 today,” Alperin said. The impact of those price increases alone could significantly drive inflation up globally, he added.

(Excerpt) Read more at fortune.com ...


TOPICS: Chit/Chat; Food
KEYWORDS: china; lockdowns
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1 posted on 04/23/2022 4:06:07 PM PDT by EBH
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To: EBH

Anyone paying attention has seen this coming for a very long time. Predicting the “if” is easy. The hard part is predicting the “when”.


2 posted on 04/23/2022 4:07:50 PM PDT by cuban leaf (My prediction: Harris is Spiro Agnew. We'll soon see who becomes Gerald Ford, and our next prez.)
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To: EBH

A very good argument to bring manufacturing back.


3 posted on 04/23/2022 4:09:52 PM PDT by Fai Mao
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To: EBH

Not to worry. Biden will fix it.

Heck, he got rid of Covid-19, so obviously, he can perform miracles.

Even the border crisis will be fixed, since eventually, there won’t be anyone left south of the border.

He’s way into fixing the climate crisis, and will soon declare that there is no more crisis when fossil-fuels stop being produced.


4 posted on 04/23/2022 4:10:48 PM PDT by adorno
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To: cuban leaf

I have been saying mid-June for when.

Others are still saying the fall.

Some are saying weeks.

the reality...

it is coming much sooner than most realize


5 posted on 04/23/2022 4:10:52 PM PDT by EBH (Hold My Beer. 1776-2021 May God Save Us.)
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To: cuban leaf; Tilted Irish Kilt; Pollard; Roman_War_Criminal; SaveFerris; null and void; ...

Ping


6 posted on 04/23/2022 4:10:56 PM PDT by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith…)
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To: EBH

Luckily, only temporarily. Right Janet? Pedo joe? Commie-la?


7 posted on 04/23/2022 4:11:34 PM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? 😕)
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To: Fai Mao

I agree. Trump tries to warn them but very few listened.


8 posted on 04/23/2022 4:12:31 PM PDT by Dutch Boy (The only thing worse than having something taken from you is to have it returned broken. )
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To: cuban leaf

Another reason why the free traitors should never have been allowed to send our industries, jobs, money, and technology to Red China back in the ‘90s, as well as a reason to vote America First and bring those things back here.


9 posted on 04/23/2022 4:13:10 PM PDT by Big Brother Go to Hell
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To: EBH

Gee, I believe Trump was doing something about that, but oh well. Who needs a good economy anyway, when we have the satisfaction of knowing a pedophile and a slut are running things.


10 posted on 04/23/2022 4:16:16 PM PDT by Telepathic Intruder
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To: adorno

He [ Lying Joe Biden the choice of the People] got rid of
$1.50 a gallon gas also.


11 posted on 04/23/2022 4:18:22 PM PDT by sport
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To: EBH

I could see this comming 30 years ago.
JIT was the “Bomb” at Boeing.
I asked the question What happens if the supplier is
late or un-controllable?
They blew me off. I was just a small cog in the machine.
You use global knowledge, but keep production LOCAL!


12 posted on 04/23/2022 4:37:49 PM PDT by rellic
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To: Fai Mao
“A very good arguments…

Now you’re acting like some sort of Trumpster.

13 posted on 04/23/2022 4:41:05 PM PDT by Deaf Smith (When a Texan takes his chances, chances will be taken that's for sure.)
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To: EBH

This will be good if it breaks Americans of their addiction to cheap Chinese goods.

We were lied to by our “leaders” when they said globalization would be a good thing as they shipped our technology and jobs overseas.

They never gave a thought that one day we would be at the mercy of nations that hate us.


14 posted on 04/23/2022 4:43:20 PM PDT by CIB-173RDABN (I am not an expert in anything, and my opinion is just that, an opinion. I may be wrong.)
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To: CIB-173RDABN

I have always asked, ‘what happens if we go to war with China?’

so many even here on FR believed and still believe it could never happen.


15 posted on 04/23/2022 4:49:38 PM PDT by EBH (Hold My Beer. 1776-2021 May God Save Us.)
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To: Big Brother Go to Hell

The problem with a truly global society is when the kids start fighting. Suddenly you don’t have the stuff anymore that is made somewhere else.


16 posted on 04/23/2022 4:51:31 PM PDT by cuban leaf (My prediction: Harris is Spiro Agnew. We'll soon see who becomes Gerald Ford, and our next prez.)
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To: rellic

Ha...I remember JIT at Intel...@35 years ago


17 posted on 04/23/2022 5:19:40 PM PDT by goodnesswins (....pervert Biden & O Cabal are destroying America, as planned.)
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To: Fai Mao

>>A very good argument to bring manufacturing back.<<
Absolutely! This has been a national security issue for a couple of decades. It’s just now beginning to come to a head.

We have had and now have the dumbest damn leaders in the world.


18 posted on 04/23/2022 5:57:56 PM PDT by servantboy777
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To: Big Brother Go to Hell

>>America First and bring those things back here.<<
Yep. Not if still true, but Walmart was the biggest employer in the U.S..

Might be Amazon now, but point being, if we have another world war and need manufacturing, tooling and so forth...we’re up 54!7 creek without a paddle.


19 posted on 04/23/2022 6:04:59 PM PDT by servantboy777
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To: EBH

the “Global Economy” only works between economies where God given rights protected by the “so called” governments instituted among men.


20 posted on 04/23/2022 6:15:37 PM PDT by kvanbrunt2
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