There is a supply chain crisis that is impacting not only the US but also the entire rest of the world. Supply chain management is being stretched to the fullest, there are ships waiting in line at ports to unload, and there is no space for them to dock. The supply continues to pile up. There are certain causes to this inconsistency in the supply chain, so let’s take a current look at supply chain issues:
Shortage of Equipment
Heavy containers need to be moved out of the ships, into the port, and onto the trucks or trains. This is done by heavy machinery, including trucks, trains, and other transport units. There is a shortage of both machines and container movers. This is what is mainly causing the storage warehouses to load up. This nationwide problem is resulting in empty store shelves, which is leading to an increase in demand. Increased demand and less supply in retail stores are forcing shops to raise prices.
Shortage problem
The trucking industry is also experiencing a record shortage of truckers. The combination of trail speed, labor shortage, warehouse space shortage, and no truck availability is causing the supply chain issue. On top of that, consumer demand only keeps rising. After the Covid19 pandemic, many residents and citizen lost their businesses and jobs. This supply chain issue severely impacts the supply of goods.
Underlying Cause
The underlying cause of the supply chain crisis is the drastic increase in demand. In other words, the coming holiday season experienced an overwhelming demand, which the current supply chain infrastructure was not ready to handle.
The American population suffered an economic backlash during the pandemic, which prevented them from spending. As a response to this, the government launched trillions of dollars worth of stimulus packages. This means that the peop previously deprived of their spending power now had the finances to exercise it during the holiday season.
Add that with the ease in lockdown restrictions, and you get an overwhelming purchase activity on an already burdened supply chain system. All of this added to the current collapse of the supply chain infrastructure and the sudden inflation in prices.
Concluding Thoughts
There is plenty of supply and goods waiting to reach the retail shelves and houses, and there is also a surging demand for the goods. The problem lies in places within the trucking industry and cargo management machinery. The trucker plays an essential role in moving cargo around the country and making commerce possible. Thus, shortages in truck drivers can also play a major role in the supply chain crises. Now that you’ve gotten a current look at supply chain issues, are you interested in joining Bay & Bay as a trucker? Check out our website now!