Bidenflation and Shortage thread

[CAA Flagship]

Was reading this settlement has not helped California ports to offload containers. Essentially, trucks need to meet EPA guidelines and that's causing a shortage of trucks. Of course you hope there are more than three trucking companies, but assume the regulations hold for everyone. This was back in Oct 2020.

https://www.epa.gov/newsreleases/us-epa ... -pollution

California also banned private owner/operators from transporting freight directly off the ports (sold out to the unions and big transport companies), which just leaves the big transport companies left to move the containers.

So as the ports expand their hours of operation, we will soon see the space at the ports fill up with containers because the ships are being unloaded quicker than what is leaving the port property.

[Winterborn]

California also banned private owner/operators from transporting freight directly off the ports (sold out to the unions and big transport companies), which just leaves the big transport companies left to move the containers.

So as the ports expand their hours of operation, we will soon see the space at the ports fill up with containers because the ships are being unloaded quicker than what is leaving the port property.

Correct. And once the port storage space is full, we are back in the same spot. But then again the 24/7 order by Biden isn't going to do much.

Administration officials promise a “90-day sprint” to clear a path for cargo. Several companies participating in the White House event will make “specific volume commitments” about containers they will remove from California docks. Leaders of the International Longshore and Warehouse Union have agreed to work longer hours, provided individual terminal operators pay up.

But the extended hours the administration is touting represent something less than the full round-the-clock operations that are typical of the world’s most advanced cargo-moving facilities.

The Port of Long Beach, which makes up one half of the nation’s chief import gateway, began a pilot program last month of late-night and predawn work. An administration official said Tuesday that Long Beach had “already gone to 24-7″ and Los Angeles would be “meeting that effort.” But only one of the Long Beach port’s six container terminals works 24 hours a day, and it does so only Monday through Thursday, according to Noel Hacegaba, the port’s deputy executive director.

Phillip Sanfield, a spokesman for the port of Los Angeles, which is adjacent to the Long Beach facility, said Tuesday he could not say how many L.A. terminals will now begin operating around the clock. But some industry executives described the administration’s latest initiative, which the White House billed as “nearly doubling” the port’s cargo-handling hours, as incomplete. Matt Schrap, chief executive of the Harbor Trucking Association, whose members service the ports, said the measure will make a “big difference” only if terminals abandon requirements for truckers to return a specific type of empty shipping container before collecting a full one.

And Craig Grossgart, senior vice president for global ocean at SEKO Logistics, said: “It will accomplish zero. It’s just window dressing.”

https://hotair.com/ed-morrissey/2021/10 ... ro-n422161

[Ibanez]

So as the ports expand their hours of operation, we will soon see the space at the ports fill up with containers because the ships are being unloaded quicker than what is leaving the port property.

Correct. And once the port storage space is full, we are back in the same spot. But then again the 24/7 order by Biden isn't going to do much.

Administration officials promise a “90-day sprint” to clear a path for cargo. Several companies participating in the White House event will make “specific volume commitments” about containers they will remove from California docks. Leaders of the International Longshore and Warehouse Union have agreed to work longer hours, provided individual terminal operators pay up.

But the extended hours the administration is touting represent something less than the full round-the-clock operations that are typical of the world’s most advanced cargo-moving facilities.

The Port of Long Beach, which makes up one half of the nation’s chief import gateway, began a pilot program last month of late-night and predawn work. An administration official said Tuesday that Long Beach had “already gone to 24-7″ and Los Angeles would be “meeting that effort.” But only one of the Long Beach port’s six container terminals works 24 hours a day, and it does so only Monday through Thursday, according to Noel Hacegaba, the port’s deputy executive director.

Phillip Sanfield, a spokesman for the port of Los Angeles, which is adjacent to the Long Beach facility, said Tuesday he could not say how many L.A. terminals will now begin operating around the clock. But some industry executives described the administration’s latest initiative, which the White House billed as “nearly doubling” the port’s cargo-handling hours, as incomplete. Matt Schrap, chief executive of the Harbor Trucking Association, whose members service the ports, said the measure will make a “big difference” only if terminals abandon requirements for truckers to return a specific type of empty shipping container before collecting a full one.

And Craig Grossgart, senior vice president for global ocean at SEKO Logistics, said: “It will accomplish zero. It’s just window dressing.”

https://hotair.com/ed-morrissey/2021/10 ... ro-n422161

I still can't understand how they let all those ships just anchor offshore...

[Ibanez]

While the focus has been on the West Coast ports of Long Beach and LA (mostly) - I didn't stop to think about the 3 ports near me: Wilmington, Savannah and Charleston.
All articles are within the past week or 2.

Charleston

Last month - about 25% of all ships arrived late to the Port of Charleston.

https://www.freightwaves.com/news/port- ... ver-before

The South Carolina Ports Authority largely has escaped the national mainstream media glare on U.S. port congestion. According to SCPA President and CEO Jim Newsome, that’s because the supply chain is not clogged at the Port of Charleston.

“The Port of Charleston is handling more retail goods, home goods, furniture, appliances and electronics than ever before,” Newsome said in a statement Tuesday. “While the global supply chain remains under tremendous pressure, SC Ports is fortunate to have invested in the right port infrastructure at the right time. We have the cargo capacity, berth availability and terminal fluidity that retailers need to quickly move their cargo as we head into the peak season.”

In fact, the Port of Charleston achieved a record September, moving 205,008 twenty-foot equivalent units at the Wando Welch, North Charleston and Hugh K. Leatherman terminals. In addition to a record September, the TEU total was a 5% increase year-over-year.

Aside from the all the trucking, South Carolina built/updated/expanded a railway system and intermodal depot at several spots throughout the state about 10 years ago with 2 main goals in mind:
1) reduce tractor trailer traffic on the roads; and
2) Expand the ports capacity capabilities

From my experience of living there before and after - it worked. I suspect, based off what's happening with Savannah, that Charleston may see some slowdown.

https://gcaptain.com/carriers-skip-cong ... -savannah/
Savannah

Congestion at the Port of Savannah has become among the worst on the U.S. East Coast with more than 30 ships at anchorage and wait times upwards of 7 days as of mid-September. In an operations update in late last month, Maersk Line said the situation in Savannah had become “increasingly challenging.”

To the point where shipping companies are suspending calls at Savannah and redirecting to Charleston.
https://www.freightwaves.com/news/hapag ... f-savannah


East Coast

With congestion at the Ports of Los Angeles and Long Beach causing massive backups, shippers have started to send more freight to the East Coast instead, according to Supply Chain Dive. The major ports on the East Coast, such as New York/New Jersey, Virginia, Charleston, and Savannah, are reporting higher cargo volumes as other West Coast alternatives, such as Seattle and Vancouver, are becoming congested as well.

To get from East Asia to the East Coast of the United States, ships must pass through the Panama Canal. That adds about seven days to a ship’s journey and about $3,000 to the price of a container, but backups are so severe that those costs are becoming worthwhile.

Supply Chain Dive reports that East Coast ports are more confident they will be able to handle increased cargo loads. The Florida Ports Council is practically begging shippers to send their freight through Tampa or Miami instead of waiting in line off the coast of Southern California. In a rhetorical flourish, the council’s president and CEO said, “Our seaports are the solution to ensure the cargo shipping logjam doesn’t become the grinch that stole Christmas.” The Port of Charleston has invested about $2 billion in infrastructure improvements over the last few years. The Port of Savannah’s capacity will increase when a major construction project is completed in December. As Rich Lowry noted in his recent piece for Politico, the Port of Virginia is more automated than other American ports and is better equipped to handle increased volume.

https://www.nationalreview.com/corner/e ... oure-next/


Very interesting times. I haven't read much about the ports and LA and Long Beach but I would assume them and the State have had massive infrastructure plans in the past decade or so. I used to ship a lot of gear to and from Long Beach from 2006-2011 and it was always a nightmare.

[Ibanez]

On another note - we spoke to a friend in the apparel industry yesterday and apparently China is experiencing rolling black outs (worst than usual) and a lot of garments, shoes, apparel in general are just not getting produced.

Not to mention anything that was produced is sitting on a ship while California gets it's shit together.

[CID1990]

On another note - we spoke to a friend in the apparel industry yesterday and apparently China is experiencing rolling black outs (worst than usual) and a lot of garments, shoes, apparel in general are just not getting produced.

Not to mention anything that was produced is sitting on a ship while California gets it's shit together.

China’s energy issues are one factor that is driving Xi’s recent belligerence towards Taiwan. The CCP is looking to distract from discontent over power problems by beating the nationalist drum.

We live in dangerous times.


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[Ibanez]

On another note - we spoke to a friend in the apparel industry yesterday and apparently China is experiencing rolling black outs (worst than usual) and a lot of garments, shoes, apparel in general are just not getting produced.

Not to mention anything that was produced is sitting on a ship while California gets it's shit together.

China’s energy issues are one factor that is driving Xi’s recent belligerence towards Taiwan. The CCP is looking to distract from discontent over power problems by beating the nationalist drum.

We live in dangerous times.


Sent from my iPhone using Tapatalk

Your employment gives you a unique perspective, which I appreciate.

[93henfan]

Meth girl HJ's are $55 now and BJs $85ish. They gotta eat too, every third or fourth day. That stuff gets priced in.

[HI54UNI]

Meth girl HJ's are $55 now and BJs $85ish. They gotta eat too, every third or fourth day. That stuff gets priced in.

How are the meth girl BJs? I know meth makes them lose their teeth so no teeth dragging?

[Ibanez]

Meth girl HJ's are $55 now and BJs $85ish. They gotta eat too, every third or fourth day. That stuff gets priced in.

How much are ZJs?

[93henfan]

Meth girl HJ's are $55 now and BJs $85ish. They gotta eat too, every third or fourth day. That stuff gets priced in.

How are the meth girl BJs? I know meth makes them lose their teeth so no teeth dragging?

It depends on how many they've lost. If you can find a Bobby Clarke, as I call them, that's worth a nice $5 tip.

[Ibanez]

Bloomberg, via MSN, has a pretty good break down of the supply chain problem. You really start to see that government, both Newsoms and Bidens, are part of the problem. While it wouldn't 100% resolve the problems, easing up on some regulations would appear to be impactful.

https://www.msn.com/en-us/money/markets ... ar-AAPMxZa

It now costs as much as $25,000 to import a 40-foot container from Asia, up from less than $2,000 two years ago. Here’s where the supply chain is under stress in the U.S., what its executives, workers and experts say Biden could do about it, and what he’s actually doing.

Ports
America’s ports face a crush of deliveries, forcing ships to wait offshore at length to unload. The Port of Los Angeles, which together with the nearby Port of Long Beach is the busiest in the U.S., says volume is up 26% this year over 2020.

As of Thursday, the Port of Los Angeles had 39 container vessels at anchor, compared to 32 a month earlier.

Ports -- a crucial step in the domestic supply chain -- have been a focus of the Biden administration. Last week, the president announced an agreement between the Port of Los Angeles and one of its unions to begin operating around the clock to ease congestion, following the Port of Long Beach.

Recent congestion at the Port of Savannah, Georgia, has prompted some shippers to divert cargo to the nearby Port of Charleston. That can relieve ports, but creates new stress on local trucks and warehouses if they aren’t prepared for the increase in volume.

Port Drivers

“The port truck driver, for decades now, has basically been the slack adjuster in the whole system,” said Steve Viscelli, an economic sociologist with the University of Pennsylvania who studies labor markets and supply chains. The entire system, he said, is built around free labor from truck drivers as they wait for containers.

The Teamsters union says Biden should try to encourage organization of port drivers so that they can bargain for better pay and benefits.

But the president has instead focused on trying to produce new drivers by streamlining licensing.

I've read in other articles that the regulations in California make it difficult for the independent owner/operator work with the ports.

Trucking


But a shortage of workers has jammed up railyards and kept shippers from unloading in a timely manner at their warehouses, increasing gridlock. There is no sign of those bottlenecks improving, as employers everywhere compete for scarce labor.

Trucking companies say that the Biden administration’s impending requirement that most employers mandate Covid-19 vaccinations will further hurt their hiring efforts, but the president has shown no indication he’ll retreat or soften the rule for firms in the supply chain.

Containers
Empty shipping containers have piled up at trucking companies in Southern California because of restrictions on when and where they can be returned to ports, said Matt Schrap, chief executive officer of Harbor Trucking Association, a coalition for carriers that serves ports on the West Coast. In the short term, freeing up space for empty containers would free up crucial transportation equipment such as chassis, which are hooked to trucks to move loaded containers at ports.

California Governor Gavin Newsom ordered state agencies on Wednesday to find sites suitable for short-term storage of container cargo and to identify “priority freight routes” for trucks to move goods more quickly from ports.

Chassis are their own wrinkle in the supply chain. Many of them are stuck under empty shipping containers, while government regulations have made it more difficult to import new chassis from overseas, said Weston LaBar, head of strategy at Cargomatic Inc., a digital freight brokerage company.

Tariffs on imported chassis from China have protected American manufacturers but at the same time “hindered every single American company’s supply chain,” LaBar said.

This has been all over the news down here (and reiterated early in the article) but container prices have skyrocketed...costing nearly 20-25x more than normal.

Exporters
U.S. exports have also become backlogged as some ships whisk empty containers straight back to Asia, seeking to reload them with more profitable imports as fast as possible.

Storage, Railroads
The Association of American Railroads has pushed to be able to charge progressively higher storage fees for freight that languishes in railyards, to make sure shippers pick it up quickly. Shippers say they shouldn’t be penalized when they aren’t able to obtain transportation for their goods.

Meanwhile, warehouse space is at an all-time low. Building new warehouses takes a minimum of two years and as many as nine in parts of California, where the industry says regulations are more strict.

This is where inland, intermodal depots should be made almost mandatory. In SC has a few, including one in the upstate that was/wasn't built specifically for BMW to easily get their vehicles to the port.

Retailers, Consumers
Retailers, the last leg of the chain before consumers buy goods, are working to bypass transportation bottlenecks to ensure the holiday shopping season isn’t disrupted. Target Corp., Costco Wholesale Corp. and Best Buy Co. have all chartered cargo ships in a bid to speed goods across the Pacific.

Consumers are spending more on goods, hoarding, etc... and it's certainly contributing to the problem.

Not sure what the stop-gap solution is aside from saying to hell with the laws and regulations: If you can drive a truck, get to a port and help out. Might be time to call in the NG and get this shit moving.

[BDKJMU]

Need another Red Ball Express…

[Ivytalk]

How are the meth girl BJs? I know meth makes them lose their teeth so no teeth dragging?

It depends on how many they've lost. If you can find a Bobby Clarke, as I call them, that's worth a nice $5 tip.

Is that Dave Schultz on the left? Looks like Mr. Larson from Happy Gilmore.

[CID1990]

Bernie Sanders is not inhabiting reality.

https://hotair.com/john-s-2/2021/10/21/ ... ro-n424021

Manchin is absolutely correct. We already passed the rescue act (which hasn’t even been disbursed yet) and we can pass the infrastructure bill. Then it’s time to take a breath and let the economy recover.

SIX trillion the guy has lost his fucking mind


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[BDKJMU]

Bernie Sanders is not inhabiting reality.

https://hotair.com/john-s-2/2021/10/21/ ... ro-n424021

Manchin is absolutely correct. We already passed the rescue act (which hasn’t even been disbursed yet) and we can pass the infrastructure bill. Then it’s time to take a breath and let the economy recover.

SIX trillion the guy has lost his fucking mind


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If you had asked me 9 months ago to pick 2 donk Senators who would stand in the way the left’s big govt spending orgy, I would have said Manchin and Tester. I’m surprised its been all Manchin and Sinema, at least publiclly. Tester is reportedly right nehind Manchin in reputation of being more of a centrist, but I haven’t heard about any opposition from him on the 3.5 trillion..

[kalm]

Bernie Sanders is not inhabiting reality.

https://hotair.com/john-s-2/2021/10/21/ ... ro-n424021

Manchin is absolutely correct. We already passed the rescue act (which hasn’t even been disbursed yet) and we can pass the infrastructure bill. Then it’s time to take a breath and let the economy recover.

SIX trillion the guy has lost his fucking mind


Sent from my iPhone using Tapatalk

6 trillion is a good starting point if you you’re hoping to get 3.5.

[UNI88]

Bernie Sanders is not inhabiting reality.

https://hotair.com/john-s-2/2021/10/21/ ... ro-n424021

Manchin is absolutely correct. We already passed the rescue act (which hasn’t even been disbursed yet) and we can pass the infrastructure bill. Then it’s time to take a breath and let the economy recover.

SIX trillion the guy has lost his fucking mind


Sent from my iPhone using Tapatalk

6 trillion is a good starting point if you you’re hoping to get 3.5.

But it doesn't work if you need someone else's vote and they won't go above 1.5/1.75 and they're willing to walk away with nothing if it's higher than that. Manchin has the leverage.

[SDHornet]

6 trillion is a good starting point if you you’re hoping to get 3.5.

But it doesn't work if you need someone else's vote and they won't go above 1.5/1.75 and they're willing to walk away with nothing if it's higher than that. Manchin has the leverage.

Most powerful person in politics at the moment.

And to Ibanez' article above, good luck finding people to work the those late night shifts at the Port of LA/LB.

[UNI88]

But it doesn't work if you need someone else's vote and they won't go above 1.5/1.75 and they're willing to walk away with nothing if it's higher than that. Manchin has the leverage.

Most powerful person in politics at the moment.

And to Ibanez' article above, good luck finding people to work the those late night shifts at the Port of LA/LB.

But it's 48 for and only 2 against in the Senate. The majority of the majority should prevail but only if that majority of the majority is illiberal, right Kalm?

The entertainment value of Manchin and Sinema giving Congressional Dems lessons in civics is priceless.

[kalm]

Most powerful person in politics at the moment.

And to Ibanez' article above, good luck finding people to work the those late night shifts at the Port of LA/LB.

But it's 48 for and only 2 against in the Senate. The majority of the majority should prevail but only if that majority of the majority is illiberal, right Kalm?

The entertainment value of Manchin and Sinema giving Congressional Dems lessons in civics is priceless.

Equally entertaining is seeing them now viewed as paragons of virtue by free market folks. Also, in a healthy system, the will of the people would take precedence over big pharma and coal.

[BDKJMU]

Bernie Sanders is not inhabiting reality.

https://hotair.com/john-s-2/2021/10/21/ ... ro-n424021

Manchin is absolutely correct. We already passed the rescue act (which hasn’t even been disbursed yet) and we can pass the infrastructure bill. Then it’s time to take a breath and let the economy recover.

SIX trillion the guy has lost his fucking mind


Sent from my iPhone using Tapatalk

6 trillion is a good starting point if you you’re hoping to get 3.5.

We’re already at 7 trillion (5.7 trillion 3 rounds so called Covid relief and 1.2 trillion infrastruture).

[CID1990]

Looks like Sinema is going to cut a deal.

Guess she saw the primary writing on the wall.

Get ready for the inflationocalypse


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[UNI88]

But it's 48 for and only 2 against in the Senate. The majority of the majority should prevail but only if that majority of the majority is illiberal, right Kalm?

The entertainment value of Manchin and Sinema giving Congressional Dems lessons in civics is priceless.

Equally entertaining is seeing them now viewed as paragons of virtue by free market folks. Also, in a healthy system, the will of the people would take precedence over big pharma and coal.

In a healthy system politicians would:

• Not jam bills full of unrelated goodies.
• Finish bills before they asked people and the media to support them.
• Be honest about the costs associated with bills.
• Actually read bills before they voted on them.
• Follow/require a balanced budget.

The people of West Virginia care about coal because of its major impact on their livelihoods. Pseudo-progressives flippantly respond that they can get training for new jobs because pseudo-progressives don't care about rural blue-collar Americans, especially those in energy related jobs.

[UNI88]

Looks like Sinema is going to cut a deal.

Guess she saw the primary writing on the wall.

Get ready for the inflationocalypse

They're not going to stop even if she supports the full 3.5 billion. Go down in a blaze of glory rather than meekly losing in the primary after capitulating.