CSCMP Opinion by CCT Shipping Frames │CSCMP NASSTRAC White Paper on Shortages
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NO ONE TO BLAME? Perhaps not – but now is when we pull our facts together and aggressively initiate solutions. What was once considered a national problem has quickly escalated into a global hit to our supply chain (namely transportation).
The pandemic has extended its tentacles into every aspect of our work economy. The politics of every decision is leading us to an industrial recession. These actions are causing too much uncertainty. Any hesitancy impacts growth in every aspect of production with that final reluctance landing on logistics.
SHORTAGES (Where do we start?)
LABOR SHORTAGE. Even though the pool of unemployed will not see extended unemployment benefits, there is no sense of urgency to return to the work force. Those that are seeking jobs are being particular in what they choose. Just throwing money at this issue will not – in the long run – result in a stable labor force. Those that jump on a high wage rate will easily jump at the next high paying job in short order.
TRUCK SHORTAGE. Freight shipping delays are wreaking havoc on the supply chain. The chip production shortage will begin to level off in late 2022 and probably not until 2023. We no longer have the luxury of waiting for production of new trucks to meet our demands.
RAILCAR SHORTAGE. The industry’s capacity is substantially reduced with bottlenecks becoming the new normal for those cars in operation. Top this shortage off with the absence of available crews in the rail yards and we are looking at more than just an inconvenience.
PORTS UNABLE TO UNLOAD. Our ports are clogged with container ships, as importers jockey for spots in domestic logistics thereby hitting deficits in all operations. These containers are filled with materials and finished goods for our manufacturers and retailers. Panic is setting in as we look forward to trying to prepare for holiday shopping. Exporters are shipping ahead of time in an attempt to be ahead of holiday orders.
TRANSPORTATION/FUEL COSTS INCREASING. Typically, a third of all expenses fall under the transportation realm. The climate of the global economy is pushing this figure up exponentially. Unless we can fill every truck, railcar and container to full capacity, we are being cheated by paying for full loads when shipping much less.
To take this information to an actionable step, please call on CCT Shipping Frames to deliver the solutions by filling these trucks, railcars and containers and double-stacking with guaranteed no damage. Visit www.CCTShippingFrames.com.
Written by Cyndy Kiolbasa, Executive Vice President, CCT Shipping Frames, LLC - 630.267.8250.
