It's dawning that there are no quick fixes for supply chains

The problems appear to be getting worse A month ago, the problems in global shipping appeared to be solvable. Ships were backing up at the Port of Los Angeles but workers weren't unloading ships at night and on weekends. Break that along with covid-related problems and get back to normal. Now a deeper inspection is ongoing as problems worsen and it's painting a different picture. Ships can unload in LA but it's not full docks that are a problem, it's full warehouses further inland. The warehouses can't clear because of a lack of truck drivers. Layered in is a mess of logistical problems and mismatches. So components are far oversupplied with nowhere to put more, while others are undersupplied. Both often arrive on the same ship. The New York Times yesterday wrote about the Port of Savanna, in Georgia where the containers are pilling up. Citing Sea-Intelligence, an industry research firm in Denmark, they note that nearly 13% of the world's cargo shipping is tied up by delays. "The supply chain is overwhelmed and inundated," Mr. Lynch said. "It's not sustainable at this point. Everything is out of whack." Invest in yourself. See our forex education hub.

It's dawning that there are no quick fixes for supply chains

The problems appear to be getting worse

The problems appear to be getting worse

A month ago, the problems in global shipping appeared to be solvable. Ships were backing up at the Port of Los Angeles but workers weren't unloading ships at night and on weekends. Break that along with covid-related problems and get back to normal.

Now a deeper inspection is ongoing as problems worsen and it's painting a different picture. Ships can unload in LA but it's not full docks that are a problem, it's full warehouses further inland. The warehouses can't clear because of a lack of truck drivers. Layered in is a mess of logistical problems and mismatches. So components are far oversupplied with nowhere to put more, while others are undersupplied. Both often arrive on the same ship.

The New York Times yesterday wrote about the Port of Savanna, in Georgia where the containers are pilling up. Citing Sea-Intelligence, an industry research firm in Denmark, they note that nearly 13% of the world's cargo shipping is tied up by delays.

"The supply chain is overwhelmed and inundated," Mr. Lynch said. "It's not sustainable at this point. Everything is out of whack."


Invest in yourself. See our forex education hub.