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 ...
Anyone paying attention has seen this coming for a very long time. Predicting the “if” is easy. The hard part is predicting the “when”.
A very good argument to bring manufacturing back.
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.
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
Ping
Luckily, only temporarily. Right Janet? Pedo joe? Commie-la?
I agree. Trump tries to warn them but very few listened.
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.
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.
He [ Lying Joe Biden the choice of the People] got rid of
$1.50 a gallon gas also.
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!
Now you’re acting like some sort of Trumpster.
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.
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.
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.
Ha...I remember JIT at Intel...@35 years ago
>>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.
>>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.
the “Global Economy” only works between economies where God given rights protected by the “so called” governments instituted among men.
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