Many manufacturers have been shifting offshore production to Vietnam since the Trump administration tariff wars with China. Most of us realize wages in China have gone up a lot, and China is no longer a cheap place to have items like clothes manufactured.
Here we see that a Covid lockdown is causing problems for supply chains that depend on manufacturing there. The measures taken in the lockdown are interesting for us in America.
Who would have guessed that prices for the container to carry your goods would go sky high? This recent spike is discussed in this article which outlines many of the reasons for the shortages.
Learning about the management of containers in the US is always rewarding. Something is always going wrong. The problem is international right now, though.
It’s not possible to book shipments anymore with some LTL carriers. Their capacity is full, and they don’t care if they get new customers. OnTrak (which delivers my vitamin pills) and Fedex recently said they were refusing new customers. The claims are that they are out of capacity– not enough planes, trucks and drivers— to deliver everything. There are other less visible bottlenecks, also, such as a shortage of trucks for sale due to the semiconductor shortage. There’s been a sort of crisis in drivers for trucks for quite a while, exacerbated by the recent enforcement of rules to prevent people who fail drug tests from getting commercial driver’s licenses. We wonder why employers don’t pay drivers more, and take more care to create working conditions more favorable to drivers.
Still, common carriers have an obligation to carry the freight presented. It will be interesting to see how far this goes, and when regulators will start crawling through these carriers’ records to see if they are unfairly denying carriage.
Eric Kulisch, Air Cargo Editor Thursday, August 19, 2021