The Supply Chain Crisis and Container Shortage

Who hasn’t been affected by Covid-19 in one way or another?  Probably no one; we have all been affected by the global transformation necessary to try to contain the spread of the virus and end the pandemic.  The supply chain crisis and the container shortage are just two more casualties of the Covid-19 virus.

LOCKDOWNS AND SHUTDOWNS

Trying to stop the spread of Covid-19 has caused cities and countries to “shut down” for a time.  So-called non-essential workers stayed home, restaurants shut down, events were canceled, and certain sectors of the manufacturing process ground to a halt. 

The pandemic lasted longer than anyone hoped it would, and, as of the writing of this, it is picking up speed again with the Omicron variant of the virus seriously impacting the still unvaccinated, as well as some who have been vaccinated.

These lockdowns and shutdowns invariably resulted in the current supply chain crisis and container shortage.  When manufacturing resumed on a limited basis, there were still worker shortages, either from those who were sick with Covid or those who were afraid to return to work for fear of getting Covid.

CHINA AND TRADE IMBALANCES

We import so much more from China than we export to them that, due to lockdowns and the shortage of workers, the United States ended up with a flood of empty cargo containers that had no goods to hold, and, therefore, no reason, to send them back to China or elsewhere in the Asian marketplace. 

There was a glut of empty cargo containers sitting idly by on the West Coast.  It doesn’t make the large freighters a profit if they transport empty cargo containers instead of full ones.

The Port of Los Angeles has been in the news consistently for not being able to dock and offload containers from the waiting vessels.

Cargo ships have had to sit for four weeks on the water because there weren’t enough dock workers or truck drivers to get the containers off the ships and delivered where they belong.

CRISIS NOT EXPECTED TO END SOON

The supply chain crisis and container shortage are not expected to fully recover anytime soon.  Due to a lack of demand, many cargo containers were scrapped.  New containers take time to build and, due to a rise in demand for them, they are now selling them to purchasers at premium prices.  Owing to e-commerce shoppers for new demand in items, the supply can’t keep up with demand.  It will still take some time before the supply chain can return to “normal.”

MESSAGE TO CUSTOMERS FROM ACCUDOCK

Supply chain disruptions and delays across almost all industries provided challenges throughout the past year and we at AccuDock continue to do our best to avoid extended delays. 

Thankfully, the access to raw materials has not hindered us too much, but lead times are longer than we have ever experienced!  We are working hard to be as transparent as possible to let customers know what to expect and we appreciate the patience that has been shown! 

The hard work and dedication of our entire staff and the core values which we share in our work together are what make AccuDock successful. 

Thank you for trusting AccuDock as your number one choice for floating dock solutions.  It is our privilege to provide you with the best possible product.  Call us at 1-954-785-7557 to speak with a knowledgeable representative if you have any questions.