Tag Archives: supply chain

500 Ships stuck outside Shanghai as Supply Chain Issues ramp up

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • China’s strict Covid restrictions are causing global supply chain issues
  • Blockages in global trade have surged due to their highest level since last September. The delay has been caused mostly by coronavirus restrictions in one of the country’s busiest ports – Shanghai.
  • “The main development of March is the reappearance of shipping congestion in the ports of Asia and the North Sea,” Liberum analyst Joachim Klement told The Telegraph.
  • According to data from Bloomberg, almost 500 ships were stuck outside Shanghai.

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Supply Chain problems are affecting Baby Formula suppliers

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Supply chain crisis: ‘Shocking’ national baby formula shortage forces rationing at major retail chain
  • The supply chain crisis has prompted Walgreens – the second-largest pharmacy store chain in the United States behind CVS – to limit the amount of baby formula that customers can purchase.
  • The reason for rationing is because of “increased demand and various supplier issues.” The restrictions are already in effect at stores.
  • CVS is also experiencing baby formula shortages.

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World economic pressure has nations considering rationing fuel, food vouchers

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Gas rationing, food vouchers and hunger: Economic pain from Russia’s war is getting real
  • Forecasts for global growth are being slashed and the chance of a US recession in 2023 has risen to 35%, according to Goldman Sachs.
  • Sanctions and other supply-chain disruptions have sent consumer prices surging across the world as oil and other commodity prices have spiked. Soaring gas and diesel prices are also adding to the cost of food, heightening fears that the world is on the brink of a hunger crisis.
  • France’s government is considering food vouchers to help residents afford to eat.
  • Desperation in Ukraine:
    • Millions of refugees are pouring out of Ukraine and little ability to pay for their needs. Inside Ukraine, some towns have less than a four days’ worth of food, the aid agency Mercy Corps said Tuesday, warning that the humanitarian system in the country “is entirely broken down.”
  • The CEO of Dutch commodity trading company Vitol said this week pulling Russian oil off the Western market will force drivers and truckers to ration diesel fuel.
  • Meanwhile, the UK government is cutting taxes to help keep fuel affordable.

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Near record levels wholesale price hits 9.7% over the past year

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Wholesale prices rise 1% in January, up near-record 9.7% over the past year
  • The producer price index, which measures final demand goods and services, increased 1% for the month, against the Dow Jones estimate for 0.5%. Over the past 12 months the gauge rose an unadjusted 9.7%, close to a record in data going back to 2010.
  • Manufacturing in the New York region increased modestly in February but was below expectations. The prices received index soared to a record high.
  • The increases come amid burgeoning inflation across the economy, with consumer prices running at a 40-year high.
  • President Joe Biden “will continue to make progress on his three-part plan of addressing supply chain disruptions; lowering kitchen tables costs with his Build Back Better agenda; and promoting more competition,” the statement said.

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Schools affected by supply chain and staffing shortages are finding it difficult to juggle the work load

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Food, Supply Chain Issues and Staffing Shortages Leave VA Schools Scrambling to Feed Students
  • It’s been almost a year since President Biden signed an executive order to fix America’s supply chain backups. Still, ripple effects and shortages have left school districts scrambling to feed students without compromising nutrition. While students are still eating thanks to diligent work behind the scenes, it remains a problem that could continue into the upcoming school year.
  • Shortages created by supply chain backups are the most recent headache. Some schools have been juggling the workload with fewer people.
  • “We are down about, almost 60 school nutrition staff who work in our kitchen,” said Larry Wade, director of School Nutrition Services for Chesapeake Public Schools. “We’re finding it hard to get people to come work for us.”

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Busiest Border in North America shut down by 18 wheelers

Important Takeaways:

  • Canadian truckers shut down busiest border crossing in North America, back up Detroit roads
  • Business leaders also sounded off that closing the busiest international border crossing in the U.S. will create supply chain issues.
  • Any delay or disruption in the supply chain creates problems, not just for agriculture but the state economy,” Chuck Lippstreu, president of the Michigan Agri-Business Association, told The Detroit News.
  • Officials are directing the travelers to use the Windsor-Detroit Tunnel or the Port Huron Blue Water Bridge instead of the Ambassador Bridge.

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Pandemic, supply chain profits hit by rising costs

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • McDonald’s profit hit by rising costs, pandemic curbs
  • Operating costs rose 14% to $3.61 billion as supply chain bottlenecks led the world’s largest burger chain to spend more for ingredients such as chicken and beef, as well as packaging material, while it also raised wages in the United States.

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Supply chain problem now effecting cold medicine

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Two years after the run on toilet paper, stores now selling out of cold medicine
  • Shoppers in North Texas are noticing stores running out of cold medicine and cough syrup. Many stores are selling out of the items as soon as new shipments arrive.
  • Target posted a blog before the holidays, describing “unprecedented supply chain shortages.”
  • Hoobler says enough cough syrup and cold medicine are being produced, but staffing shortages at ports and stores’ distribution centers prevent the product from making it to the shelf.

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Supply chain interruptions will continue over next 6 weeks as COVID-19 variant impacts labor market

Rev 6:6 NAS And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Billionaire supermarket CEO warns of potential meat, egg shortage as omicron disrupts US supply chain
  • Billionaire Gristedes CEO John Catsimatidis, went on to say that many of these interruptions will continue over the next 6 weeks as the COVID-19 variant impacts the labor market
  • Various products, including eggs, poultry, and beef, go up because of low supply and high demand
  • He added that the price hikes and supply chain shortages have been exacerbated by the rising cost of oil, which is necessary for transportation.

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Chickens, tractors, grain silos destroyed by deadly U.S. tornadoes

By Tom Polansek

CHICAGO (Reuters) -A Deere & Co dealership and a Pilgrim’s Pride Corp chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the companies and the state’s agriculture commissioner said on Monday.

“We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns,” said Ryan Quarles, Kentucky’s agriculture commissioner.

The destruction in the Midwest could further raise already high chicken prices and add to supply-chain headaches that have made it difficult for farmers to replace tractor parts.

Poultry is Kentucky’s top agricultural commodity, and at least a dozen chicken barns collapsed, Quarles said. The state is working with the U.S. Environmental Protection Agency to properly kill and dispose of chickens housed in barns that were destroyed, he said.

President Joe Biden will visit the state on Wednesday to survey the damage.

One Pilgrim’s Pride chicken hatchery was a total loss, and another is expected to be offline until spring after suffering significant damage, the company said in a statement. It added that other company hatcheries are supplying chickens to farmers near Mayfield, a town of 10,000 that suffered some of the worst damage from the tornadoes.

Pilgrim’s, which is mostly owned by Brazilian meatpacker JBS SA, is evaluating damage to a local feed mill, while a production plant is expected to be fully operational on Wednesday, the statement said.

The loss of the hatchery in Mayfield “automatically triggers a multi-month delay in the processing and raising of chickens because the hatchery simply is not there anymore to supply the farmers,” Quarles said.

Mayfield is in Kentucky’s top county for agricultural sales, accounting for 6% of the state’s total farm business, according to U.S. Department of Agriculture data, though the state is not a top grain producer. Kentucky held 1.5% of U.S. corn stocks in December 2020, the USDA said.

“Lots of farmer elevators damaged. Some small feed mills have damage with indefinite timelines,” said Andrew Jackson, broker at Producers Hedge, in Lancaster, Kentucky.

Mayfield Grain Company, a crop handler, had roofs ripped off of parts of a storage system that holds 6 million bushels of grain in Mayfield, Quarles said. That’s enough corn to fill two Panamax vessels — each ship the length of two football fields.

Photos on Twitter showed yellow corn visible from the tops of bins that lost their roofs. The company had no immediate comment.

“You have millions of bushels of corn, much of which was just freshly harvested, being exposed to the elements, being damaged,” Quarles said.

“We’re looking for ways to recover spilled grain but also divert the storage and movement of grain to other facilities around the state.”

Quarles said the agriculture department will help farmers find buyers for grain amid reduced demand for feed from livestock and poultry producers who suffered losses.

Hutson Inc, a company that sells Deere equipment, said its flagship store in Mayfield was “destroyed by one of the worst natural disasters to ever hit the state.”

Workers “waded through debris and used what equipment they could salvage to assist with rescue efforts at a candle plant located next to us that had mass casualties,” Chief Executive Josh Waggener said in a statement online.

Deere said it is in touch with Waggener and working with Hutson to provide financial assistance to the community.

(Reporting by Tom Polansek, Christopher Walljasper and Mark Weinraub in Chicago; Editing by Caroline Stauffer and Lisa Shumaker)