Global Supply Chain Collapse

Michael Snyder, If CNN starts sounding like The Economic Collapse Blog, what does that mean? Unfortunately, the truth about what is in our immediate future is becoming apparent to everyone. Global supply chains are in a state of complete and utter chaos, and this is driving up prices and causing widespread shortages all over the country.

Over the past couple of weeks, I have written five articles with either “shortage” or “shortages” in the title, and some have accused me of being a little alarmist. If that is the case, then CNN is being alarmist too, because one of their top stories today openly warned of a “global transport system collapse”…

In an open letter Wednesday to heads of state attending the United Nations General Assembly, the International Chamber of Shipping (ICS) and other industry groups warned of a “global transport system collapse” if governments do not restore freedom of movement to transport workers and give them priority to receive vaccines recognized by the World Health Organization.

For decades, we have all been able to take our extremely complex supply chains for granted. Things have always been where they need to be when they needed to be there, and many of us just assumed that it would always be that way.

But now organizations that represent 65 million transport workers around the globe are openly warning that “global supply chains are beginning to buckle”…

“Global supply chains are beginning to buckle as two years’ worth of strain on transport workers take their toll,” the groups wrote. The letter has also been signed by the International Air Transport Association (IATA), the International Road Transport Union (IRU) and the International Transport Workers’ Federation (ITF). Together they represent 65 million transport workers globally.

“All transport sectors are also seeing a shortage of workers, and expect more to leave as a result of the poor treatment millions have faced during the pandemic, putting the supply chain under greater threat,” it added.

Things are particularly bad at our ports. Right now, there is a backlog of approximately 500,000 shipping containers waiting on ships off the west coast waiting to be unloaded…

As an estimated 500,000 containers are sitting on cargo ships off the Southern California coast, many are wondering how to handle the backlog.

Needless to say, we have never seen anything like this before.

But what most Americans don’t realize is that the backlog off the coast of China is even worse…

There are over 60 container ships full of import cargo stuck offshore of Los Angeles and Long Beach, but there are more than double that — 154 as of Friday — waiting to load export cargo off Shanghai and Ningbo in China, according to eeSea, a company that analyzes carrier schedules.

The number of container ships anchored off Shanghai and Ningbo has surged over recent weeks. There are now 242 container ships waiting for berths countrywide. Whether it’s due to heavy export volumes, Typhoon Chanthu or COVID, rising congestion in China is yet another wild card for the trans-Pacific trade.

If you are waiting for something to come in from overseas, you may be waiting for a very long time.  TO READ MORE ABOUT THIS CATASTROPHY, CLICK HERE...