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- The expansion of the shipping log jam hasn’t helped inflation any. The dotted red line in the graph below is the level reached by the highest shipping costs per container when I reported a month ago, and the solid line is where those same runs price today. You can see they have only continued to rise — prices that will show up in stores when and if the products in those ships ever show up in stores:
- That means additional inflation waits in the pipeline (or at the waterline), a problem not about to go away soon. According to Long Beach Port Director Mario Cordero,
I don’t see substantial mitigation with regard to the congestion that the major container ports are experiencing…. Many people believe it’s going to continue through the summer of 2022…. Bob Biesterfield, chief executive of C.H. Robinson Worldwide Inc. the largest freight broker in North America, said shortages of truck drivers and warehouse workers are making shipping delays worse as the need to replenish inventories is at an all-time high. “I don’t think that’s something that just gets fixed in the next four to five months in accordance with the Lunar New Year,”
Once you start seeing empty shelves in major retailers with vast resources, you’ve entered a situation that can become catastrophic in a hurry. Suddenly, you will have people who can’t get basic necessities because of jammed-up shipping, lack of laborers in production and retail, COVID shutdowns around the world, and lack of resources to build things out of or parts to make them. We haven’t seen that until now because large corporate inventories were carrying us through as a buffer, but those inventories are mostly depleted now, and that means prices are likely to rise faster as people compete for the things they need. Do our government officials realize how quickly this could go from concerning to a panic?
- New York passed a law last week that will outlaw the sale of new passenger vehicles that produce emissions by the year 2035.
- The bill was signed into law by Gov. Kathy Hochul (D) on September 8 after it passed in both the New York State Assembly and the state Senate. According to the new legislation, all passenger vehicles, including trucks and cars will be required to produce zero emissions by 2035. 5612616215
- The bill also aims to end the sale of new medium-duty and heavy-duty vehicles that produce emissions by the year 2045.
- Oil prices could top $100 per barrel in the event of a significantly colder-than-usual winter, Bank of America analysts said in a note cited by Reuters.
- Global crude oil demand could surge by up to 2 million barrels per day (bpd) in the event of a major winter cold snap, which could send oil prices past the $100 per barrel mark, Bank of America analysts wrote in the Sept. 10 note, according to Reuters.