Our Fragile Supply Chain

Discussion in 'In the News' started by John West, Aug 31, 2021.

  1. John West

    John West Very Well-Known Member
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    I saw this on the news today, which suggests our supply chain problems are not even close to being solved.

    A record number of container ships are stuck waiting to enter California’s two largest ports as labor shortages and COVID-19 disruptions continue to roil a supply chain that’s being pushed to its limits ahead of the busy holiday shopping season.

    A total of 46 freight ships are at anchor or in a drift area waiting to enter the ports of Los Angeles and Long Beach, the Marine Exchange of Southern California, which operates the Vessel Traffic Service for those two ports, reported late Monday evening.

    “Trend at anchor and in drift areas is essentially steady next 3 days,” the group said in a statement. “Through it all, port partners are keeping your Marine Transportation System safe, secure, reliable, and environmentally sound, despite not being efficient at this time due to the backup.”


    Source: NY Post
    This problem is, IMHO, the result of both covid lockdowns and some very bad management theory from the major business schools and consulting firms (i.e., just-in-time inventories or JIT). To that end, here's a video on the subject.

     
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  2. Marie Mallery

    Marie Mallery Veteran Member
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  3. John West

    John West Very Well-Known Member
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    We ordered two counter chairs last month to be made by a chair firm in PA. Due to supply chain problems, the dealer estimated it will take 7-8 months to get them.
     
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  4. John West

    John West Very Well-Known Member
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    This crossed the wires:

    DETROIT – General Motors will idle nearly all its assembly plants in North America starting Monday as the COVID-19 pandemic affects production of semiconductor chips overseas. The industry already has been experiencing a global shortage of the chips, used in a variety of car parts, since early this year. The chips are also used in small electronics and as more workers and children stayed home from work and school last year during the pandemic, demand for personal electronics, such as laptops, rose and created a shortage of chips. Source: Detroit Free Press.
    More people out of work as a result of the covid and other blunders affecting the supply chain.
     
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  5. Don Alaska

    Don Alaska Supreme Member
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    If it is bad now, when China takes Taiwan, they will have essentially a monopoly on chips and we won't be able to build cars, computers (most already built in China) or high-tech weapons. The Chinese will be able to build many of those weapons and such we left behind in Afghanistan, but we won't.
     
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  6. Ed Wilson

    Ed Wilson Veteran Member
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    I was at my Subaru dealer today for service and the showroom is devoid of cars and the lot only had a handful of used and a few loaners.
     
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  7. John West

    John West Very Well-Known Member
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    A week or so back, I was at at one of the larger motorcycle dealers in New England for service. and it looked like they had a limited inventory on hand.
     
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  8. John West

    John West Very Well-Known Member
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    Given that this country's supply chain health directly affects the things you buy, drive, eat and use; it is worthy of some attention. To that end, BNSF (railroad) is notifying its customers and the NTSB that its Chicago intermodal facility is "extremely challenged", which means it's on the verge of breakdown. This is happening because too many incoming shipments (i.e., containers) are not being picked up. Some weeks back, UP shut down all west coast shipments to Chicago for the same reason. Below is a pic of BNSF's Chicago intermodal yard.

    [​IMG]

    Source: Trains,
     
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  9. Cody Fousnaugh

    Cody Fousnaugh Supreme Member
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  10. Al Amoling

    Al Amoling Veteran Member
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    How do you go from a traffic jam on the water to "our economy can't be that bad"?
    They can't unload because there's no place to put containers because there's a shortage of truck drivers. BTW wall street finding new excuse every day to tank.
     
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  11. Cody Fousnaugh

    Cody Fousnaugh Supreme Member
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    This tells somewhat of a different story than your reply does: Dozens of cargo ships wait outside ports near Los Angeles as import demands surge amid easing pandemic restrictions. The uptick in shipping traffic is increasing the demand on ports to handle more cargo, forcing a snag in the U.S. supply chain. (Sept. 22)

    IOW, Al, America is definitely buying!
     
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    Last edited: Sep 23, 2021
  12. Al Amoling

    Al Amoling Veteran Member
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    True to form you take my reply as I don't like you....You can't take any criticism of your opinions then I'll not do that any more
     
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  13. Cody Fousnaugh

    Cody Fousnaugh Supreme Member
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    Ok, Al, I took that "don't like" off of my last reply. Guess you have a point in why all of these cargo ships are sitting off of the coast waiting to come in. There is a major problem in the trucking industry with lack of drivers, so, why is America buying so much? It has to cost someone to have these ships waiting to unload...........doesn't it?
     
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  14. Lon Tanner

    Lon Tanner Supreme Member
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  15. Don Alaska

    Don Alaska Supreme Member
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    From what I gather in my reading, the backlog is due in part to the Covid shutdowns and labor shortages in California. Demand may be up a bit, but the backlog is due to the inability to unload the freighters. There is a developing severe shortage of shipping containers due to the number stuck on the ships that have yet to be unloaded. The container shortage will lead to further destruction of the supply chain.
     
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