February 3, 2022
SUPPLY CHAIN ISSUES CONTINUE TO RISE
Even with the holiday season behind us, supply chain issues are getting worse. Early on, COVID-19 created an enormous problem for the supply chain as ports experienced a significant decrease in trade. After the lull, a massive surge of imported goods created a bottleneck effect that the supply chain was not designed to deal with and is causing unforeseen problems to occur.
PORT CONGESTION:
As reported in the Journal of Commerce, we can expect more congestion ahead for Los Angeles and Long Beach ports in the coming months due to labor and chassis shortages, increasing truck turn times and vessel backlogs.
LABOR ISSUES:
As labor issues continue to plague the ports, a truck driver shortage is also a major contributing factor in fueling the supply chain crisis. U.S. Lawmakers have announced a plan to recruit and retain truck drivers to combat the shortage that has been a big contributor to the massive supply chain issues.
Coupled with U.S. woes, Canadian truck drivers are on strike against vaccine mandates. Known as “The Freedom Convoy” the drivers and their supporters have created blockades in Ottawa and obstructed the U.S.-Canada border.
THEFT:
USA Today reports that thieves are looting trains out of Los Angeles as if it were the Wild West. The criminals are targeting the weakest link by identifying vulnerabilities in the supply distribution chains. Action by law enforcement, the freight railroad companies, and changes in criminal sentencing procedures or guidelines were identified as possible solutions to help curb the loss.
F. H. Kaysing will continue to monitor these supply chain issues however should you have any questions about this or any other trade matter, please contact us.
PORT CONGESTION:
As reported in the Journal of Commerce, we can expect more congestion ahead for Los Angeles and Long Beach ports in the coming months due to labor and chassis shortages, increasing truck turn times and vessel backlogs.
LABOR ISSUES:
As labor issues continue to plague the ports, a truck driver shortage is also a major contributing factor in fueling the supply chain crisis. U.S. Lawmakers have announced a plan to recruit and retain truck drivers to combat the shortage that has been a big contributor to the massive supply chain issues.
Coupled with U.S. woes, Canadian truck drivers are on strike against vaccine mandates. Known as “The Freedom Convoy” the drivers and their supporters have created blockades in Ottawa and obstructed the U.S.-Canada border.
THEFT:
USA Today reports that thieves are looting trains out of Los Angeles as if it were the Wild West. The criminals are targeting the weakest link by identifying vulnerabilities in the supply distribution chains. Action by law enforcement, the freight railroad companies, and changes in criminal sentencing procedures or guidelines were identified as possible solutions to help curb the loss.
F. H. Kaysing will continue to monitor these supply chain issues however should you have any questions about this or any other trade matter, please contact us.