Shortages and supplies

Shortages of all kinds of consumer goods have been in the news lately. There are shortages of all kinds of items from paper, food, textiles, toys and computer chips. Recently I had our ten-year-old car at a dealership for some routine maintenance and while I waited, I attempted my usual practice of taking a look around the showroom and sales lot. The showroom was empty. There are no cars there. The sales lot was nearly as empty. They had a single row of used vehicles. There were no new vehicles on the lot. I checked another nearby dealer of the same brand and they had a total of six new vehicles. There is a chain reaction that affects the number of new cars delivered to consumers. Because cars are made up of many different components, a break in the supply chain of a single component can slow production. The shortage of computer chips has affected the production of all kinds of components from air bags to cruise controls. Add to those shortages problems with shipping and distribution and manufacturers are not able to met demand.

It isn’t just the cars in the dealer showrooms that are affected. Sellers are already warning of a shortage of toys for Christmas this year. Toy shortages are just part of the crimp in supplies that Americans import from China. China’s production crisis stems mostly from an electricity crisis. More than half of China’s electricity comes from coal. Coal production is down because of new safety rules, stricter environmental regulations and flooding. There is a surge in demand for Chinese goods, but factories have been closing on some days because they cannot get enough electricity to continue production. That means fewer toys on the shelves in the US. It probably also means possible shortages of staples such as toilet paper, bottled water, clothing and pet food.

Pandemic working from home created a huge increase in the demand for laptop computers and an increase in sales of cell phones and other mobile devices. Production has lagged behind demand. The shortage of computer chips experienced by other industries hits the production of computers especially hard.

The shortages of goods from China is exacerbated by a bottleneck at US ports. About 40% of all shipping containers entering the US come through Los Angeles and Long Beach California. Those two ports are backed up. Before Covid, it was unusual for more than one ship waiting to be unloaded. Last month there was a record 73 ships waiting at just one of those ports. The ports have moved to 24/7 operation, but backlogs are difficult to clear. The backlog is due in part to a surge in spending by US consumers. People who are working from home and staying away from entrainment such as theaters and restaurants are doing a lot of online shopping. More people want more goods. It isn’t just the ports, who are struggling to keep up. Part of the reason the ports are backlogged is that rail networks are overloaded. There is a shortage of trucks to deliver all of the items to consumers. Crumbling roads and bridges are slowing deliveries.

Meanwhile a severe drought in Brazil has resulted in a disappointing coffee harvest. The big fall in coffee production, added to higher shipping costs, means that supply can’t keep up with usual levels, let alone the increased demand.

The list of consumer goods in short supply is long and it is affecting the quality of life in many places around the globe. In Lebanon, there is a shortage of medicines and frequent electricity outages have resulted in increased use of diesel generators increasing costs beyond the means of many people. In Nigeria, there are widespread shortages of Liquified Natural Gas (LNG) which is mainly used for cooking. The cost of LNG went up 60% between April and July. Charcoal and firewood are the only options remaining for many families. Shortages of imports combine with disruptions in energy disruption have led to a general slow down of many industries from cement to steel to construction to automobiles in India. The result has been high inflation, raising the prices of essentials such as food and oil, hitting families especially hard.

The entire global supply chain is disrupted and there are no simple solutions to the complex problem.

Meanwhile, in our own little corner of the world, our problem continues to be oversupply. Yesterday I boxed and moved our books to our new home. Despite having culled more than 3/4 of the books we had in our home and office libraries in South Dakota, we still have a lot of books - too many for a household with easy access to libraries. The Whatcom Library System that serves our new home has a dozen libraries, a bookmobile and additional drop-off locations to return books. The library that is within walking distance of our new home is slated for a new building pending a vote in November. And it isn’t just books with which we are oversupplied. Our new home has one fewer bedrooms than our rental, which is down one from our home in Rapid City. We have too much furniture. While I was moving books, Susan was packing up our kitchen. Our new home has a dedicated drawer for cooking spices. We have more than fit in that drawer. The linen closet is adequate for the home, but smaller than the one we are leaving behind. The list goes on and on.

However, I have decided to draw the line at reduction of our supply of cook books. We’re keeping them for now even if we have a shortage of storage space. We’ll need them to face another shortage in the supply chain. Last night after dinner, tired from a day of moving heavy boxes, I ran to the store to pick up a few groceries. Because we are busy with moving and work, I wanted to pick up a box of ginger snaps. There were no ginger snaps on the shelves in the grocery store near our home. I went to two additional stores. No ginger snaps! The shortages are really hitting home now. Fortunately we have some very good recipes for ginger snaps. As soon as I can find the time and the bowls and pans in the chaos of moving, I’ll be getting to baking.

There are some shortages that must be addressed.

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