Monday, July 26, 2010

This Whole Global Supply Chain Thing Could Use a Back-Up Plan

 Shipping consumer goods to the United States just got a bit harder.
Because of slow steaming, which takes containers out of the system for a longer period of time, and because places like Russia and India began to demand container space, finding something to ship goods in, much less space on a ship, has been problematic.
“There aren’t enough actual containers, so therefore, even if the vessel capacity situation is easing up a little bit,” said Peter Tirschwell, senior vice president for strategy at The Journal of Commerce, “you now have equipment that people can’t get.”
Given that most of the economic activity fueling the world revolves around transporting goods on razor-thin profit-margins and selling goods in "THIS WEEKEND ONLY __% OFF SELECT ITEMS" sales at large retailers who order these items in bulk, any minor disruption leads to everything getting more expensive for everyone.

Might not be a bad idea to look into re-localization efforts once the global supply chain starts to fragment from 1. energy costs, 2. regional wars, 3. international pandemics, 4. demand and supply outstripping transportation options, and 5. any other number of problems that throw off the entire economic system citizens of rich countries take for granted.

1 comment:

Blogger said...

I have just installed iStripper, so I can have the best virtual strippers on my desktop.

Like What You Read? Share It.

Share |