Supply Chain Issues

Discussion in 'Economics' started by kmiklas, Oct 14, 2021.

  1. kmiklas

    kmiklas

    Yeah this whole story is a little fishy.
     
    #11     Oct 14, 2021
  2. ipatent

    ipatent

    Maybe part of a low level trade war
     
    #12     Oct 15, 2021
    kmiklas likes this.
  3. Ports also have not been fully staffed because of Covid outbreaks and not enough workers, so they are pulling cargo more slowly. This has resulted in more containers being stuck on ships, driving a shortage of containers.

    On the semiconductor front, a lot of components are made in south east Asia which has been hit pretty bad by Covid. Add that to the fact that when Covid first hit, most companies cut their orders, and when Covid abated, they all added orders back at the same time. This, in addition to still challenging work environments due to Covid, has meant that output has not been as high as it needs to be in order to satiate demand. As this situation persist the backlog will continue to grow until price begins to damage demand. This is classical macro theory lol.
     
    #13     Oct 15, 2021
    kmiklas likes this.
  4. VicBee

    VicBee

    I get it, that's the story we're being fed and the one I don't believe, although I don't have a better explanation.

    Do you know what "not fully staffed, not enough workers" really means?
     
    #14     Oct 15, 2021
    kmiklas likes this.
  5. maxinger

    maxinger

    1. Why factory cannot produce enough ?

    workers cannot work because they are infested with covid

    workers cannot travel to work because of lockdown

    factories have to close because of covid cases in the factory

    no electricity because of no coal. so the machines cannot run



    2. why suddenly a huge demand for some products?


    billions of people have to stay at home because of lockdown

    suddenly many people cannot do anything except trading from home

    suddenly many people buy handphones, computers, EV cars.
    suddenly not enough chips.


    3. why products are not available in the store / supermarket?
    because of above

    because at the port, port workers are sick from covid

    suddenly not enough shipping containers

    because of sudden demand, there is a traffic jam at the port

    truck drivers are banned from transporting goods unless the goods are
    very essential



    4. Then why factory cannot produce more
    - coal, gas, chips, shipping containers ....?


    and the cycle continues and continues
     
    Last edited: Oct 15, 2021
    #15     Oct 15, 2021
    ipatent likes this.
  6. VicBee

    VicBee

    Thanks for making it easy for me Maxinger. Let me take your numbers and go from there...
    1. I don't know where you live but in China, Korea and Taiwan, where most of everything is made, factories shut down for about 30 minutes, long enough to remove the corpses and replace them with new workers.

    2. Recruiting more union dues paying workers is a basic union goal. Creating labor shortage is their strategy and, for that, covid has been God sent: "Our workers are sick, our workers are afraid, our workers aren’t protected by greedy employers, so we stand by"... I call it the union short squeeze.
    Same applies to shipping lines mind you.. no crews, no ships, price increase! Somehow they need to recoup their losses from the early days of covid.

    3. Yes, perhaps bored people at home bought more things... but I doubt that's why we are suddenly faced with shortages of everything.
     
    #16     Oct 15, 2021
    murray t turtle likes this.
  7. maxinger

    maxinger

    good points.

    but actually, we are facing shortages for some products only.

    there are some products which are having oversupply problem
    (mainly fruits and vegetables) due to some of the reasons stated earlier.
     
    #17     Oct 15, 2021
    murray t turtle likes this.
  8. %%
    Good, even though i have not seen any shortages[or sign limits] in the south where i live.
    Also, LUV airline blaming weather/LOL. Actually many LUV pilots don't want an expiremental 'free'' vaccine \same way with nurses, policemen. NOT sure if Chicago mayor wants 50% of police force resigning over that ??
    Plenty of people are spending; ammo sales may have slowed a bit. Stay tuned
     
    #18     Oct 15, 2021
  9. VicBee

    VicBee

    Experimental? I see you're no scientist, but that Fox keeps you awake at night.
     
    #19     Oct 15, 2021
    murray t turtle likes this.
  10. %%
    LOL, keep pushing the party line ''only one snake oil cure /LOL:D:D''
    Frankly that's also wrong, i dont watch FOX @ nite. Looks like you are also pretending you know more than US Senator + Medical DR Rand Paul.LOL
    But as far as union short squeeze, VicBee,maybe right on that. Also, you pretending, only one snake oil cure could help increase union membership.......................................
     
    #20     Oct 15, 2021