You may have noticed store shelves looking bare lately. Unfortunately, expect to see more scarcity. Experts believe supply issues will get worse, before they get better.
It seems a perfect storm of issues is the problem. Those glitches include, labor shortages especially truck drivers and dock workers, COVID-19, severe weather and power outages in China. You have likely seen the images of cargo container traffic in ports off of Los Angeles/Long Beach, California.
Supply chain depends on containers, ports, railroads, warehouses and trucks. When more than one of these areas experience disruption you have the current problem, lack.
GreatFlorida Insurance previously reported on the chip shortage affecting the production of cars and electronics. The Wall Street Journal estimates that because of the shortage, seven million cars were not built.
“This problem shines the spotlight on the necessity to become less dependent on oversea suppliers,” says Buck Vice President of GreatFlorida Insurance, Florida’s top independent homeowners insurance agency.
As the holidays approach, the United States Postal Service (USPS) announced it is reducing its use of air transportation to save money, so deliveries outside your local area will be delayed a couple of days. Also prepare for a price hike.
Thankfully, the United States Department of Agriculture (USDA) has announced there are currently no food shortages in the US at this time. However, they continue to monitor the food supply chain across the US.
While there is no report of food deficiency, Americans are likely to see a shortage of goods or an increase in prices due to high demand and low supply. According to USA Today, the following are products that might be hard to find and why.
Carbonated drinks– Due to a global CO2 shortage
Coffee– Brazil, supplier of most coffee beans is experiencing drought
Diapers– Prepare to see a price increase due to a shortage in raw materials
Fish sticks– A dispute at the US-Canada border
Sour Patch Kids, Swedish Fish & Toberlone– due to supply chain constraints
Toilet paper– A shortage in raw materials