Thursday, October 21, 2021

What Can't We Get?

 I was watching a commentator on TV talk about the supply chain issues and saying that the President needed to fix it.  He went on to say that he never supports using the military or national guard to do things like this.

The problem, if it really is a problem, is that many container ships can not be processed because of a lack of facilities and workers.  There is no magical way to increase these capacities so the question has to be can some shipments be diverted to other ports?

It doesn't seem like we have extra capacity anywhere at this time and working through the backlog is going to take some time.  Once the containers are removed from the ships they still have to be transported to their ultimate destinations for processing.

Not sure we have the capacity to do this quickly either.

The question I have is what is our current processing rate?  If it is still inadequate we will increase the shortage and not work down the backlog.  If it is sufficient it will help reduce the shortage.  

What exactly is the shortage anyways?  

I know we see some inflationary pressures related to this impact, I'm just not sure where.  Mostly you see pictures of empty supermarket shelves on the news, but my experience is that the supermarkets seem about the same as ever.  How many food items are wasting away on container ships?

People are not going to invest a ton of money to build short term capacity so we will have to be patient.


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