SRC WARNING: Supply Chain Problems Indicate HUGE Shortages About To Hit US

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You may be aware that the pandemic reduced handling capacity at many Chinese ports by as much as 80% as recently as a few weeks ago. This has led to a massive log jam with container ships stranded at sea unable to drop off or pick up cargo. This in turn has led to massive delays at US ports and hubs. Goods are being delayed for stores. Manufacturers are unable to source parts. Technologies that require assembly of parts sourced from around the world are just not able to produce and deliver goods. It’s so bad that some companies are buying their own container ships to get around the problem. In the USA the longshoremen in California are preparing to strike as they know that their demands are very likely to be met as the country looks at huge shortages. Chicago rail depots are overflowing.

The UK is already predicting a massive shortage of goods from beyond its shores. The domestic politics are blaming it on Brexit, but those in the know recognize that this is a foretaste of what’s about to happen in the US. As we have been saying for months, US companies need to bring back US operations and reshore or onshore their manufacturing and assembly plants. It’s now too late for most of them to do this, but we need to prepare to pay more for our goods as we trade off reliable supply for US wages.

Added to the pandemic-induced problems, the ships awaiting entry to Chinese ports were just subjected to the typhoon In-Fa, and towns and cities in the predominantly manufacturing areas were flooded in fluke heavy rains.

OUR ADVICE

Head to your local big box store. Start prepping for items you need a lot of: pet food, paper goods, cleaning supplies, batteries, etc. Throw in some canned foods. Planning a DIY project – get the paint now. Kiss lumber goodbye – it’s already to late for that. Got a car that keeps breaking down? Buy spares now? TVs, electronics on your list for Christmas? Get them now while they are in-store. Christmas knick-knacks and  tchotchkes? Get them now.

Here are the Top Ten imports from China. Work it out for yourself.

Top Ten Imports from China JungleScout

If you are on Twitter follow Huntsman @man_integrated. He is an expert in China supply economics. He warned months ago that orders for Christmas were already too late. Now he is fears a major collapse in the supply chain, citing recent events such as John Deere instructing dealerships only to order parts if they were sold. Imagine the shitshow this will cause at harvest when farmers go to get parts and there isn’t any inventory. Our other trade partners such as Pakistan, Bangladesh, and India are also experiencing incredibly tight ocean and air freight capacity. This is going to get worse, much worse before it gets better. Prep now. Prep hard. The Administration is not up to the task of solving this. We saw how hopeless they are with COVID; much more interested in settling old scores and promoting CRT. We will be on our own.