07 November 2021

The State of the Supply Chain

I knew things were screwed up, even before California decided to over regulate trucking, but I didn't know it was this screwed up. I've Been Driving Trucks For 20 Years, I'll Tell You Why America's "Shipping Crisis" Will Not End | ZeroHedge

What happens when a trucker shows up at a port to pick up a container. What happens to that container, and the chassis it rides on. Where the bottlenecks are, and why they won't disappear anytime soon.

Chronic understaffing has led to this problem, but it is allowing these same companies to charge ten times more for regular services. Since they’re not paying the workers any more than they did last year or five years ago, the whole industry sits back and cashes in on the mess it created. In fact, the more things are backed up, the more every point of the supply chain cashes in. There is literally NO incentive to change, even if it means consumers have to do holiday shopping in July and pay triple for shipping.

And if you think things are bad now, wait until the federal government decides to "fix things" the way California put independent contractors out of business and regulated trucks out of existence. Or think about it this way. Do you think that anyone in Congress understands logistics? Anyone in the bureaucracy?

"I'm from the government, and I'm here to help" is still the most frightening sentence in the English language. (Hat tip to Wirecutter.)

1 comment:

  1. Aren't most of the ports operated by Chinese companies?

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