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Shortage of everything?

araomd

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The Hen that laid the Golden Legos
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There is a shortage of ammo, shortage of guns, shortage of computer chips, shortage of new cars, shortage of used cars, shortage of lumber, shortage of houses, shortage of plastic, shortage of fried chicken.
How is this not going to result in some inflation?

https://www.wsj.com/articles/snarled-supply-chain-trips-up-small-businesses-11618997400

https://hbr.org/2021/03/the-latest-supply-chain-disruption-plastics

https://www.bloomberg.com/news/arti...en-craze-is-causing-u-s-to-run-low-on-poultry



ManheimUsedVehicleValueIndex-LineGraph.png
 
Most of what I see and am involved with is vessel space and container shortages from Asia. The worldwide shutdown last year threw the balance of global container placement off, and once the switch was abruptly turned on, the means to deliver these goods were not readily available.

On top of that, add in the fact that Walmart and Amazon are paying crazy money above and beyond their normal freight charge, which means Freddy's Appliances got bumped off the reserved container space list on the ship because Walmart paid $4000 more to ship their container.

As it stands today, what was once @ $2-$3K to ship per container, is up to $15K*. I have customers that put orders in 2-3 months ago, and due to the freight rate spike are cancelling these orders today.

* Edit 5-22-21, now up to $20k.

But, this also means, raw materials going to the plants in Asia to make the goods that are being sent over to the US and other parts of the world are experiencing logistical issues because they are having vessel space problems as well.
 
Most of what I see and am involved with is vessel space and container shortages from Asia. The worldwide shutdown last year threw the balance of global container placement off, and once the switch was abruptly turned on, the means to deliver these goods were not readily available.

On top of that, add in the fact that Walmart and Amazon are paying crazy money above and beyond their normal freight charge, which means Freddy's Appliances got bumped off the reserved container space list on the ship because Walmart paid $4000 more to ship their container.

As it stands today, what was once @ $2-$3K to ship per container, is up to $15K. I have customers that put orders in 2-3 months ago, and due to the freight rate spike are cancelling these orders today.

But, this also means, raw materials going to the plants in Asia to make the goods that are being sent over to the US and other parts of the world are experiencing logistical issues because they are having vessel space problems as well.

Wow! Glad I grabbed a container last summer.

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