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Truckers warn skyrocketing diesel prices are making US supply-chain and trucking industry unsustainable

Truckers warn skyrocketing diesel prices are making US supply-chain and trucking industry unsustainable

Truck passes  sign at Flying J Truck Stop in Pearl, Miss., Wednesday, April 20, 2022.
Truck passes sign at Flying J Truck Stop in Pearl, Miss., in April. The trucking industry offsets diesel prices through a fuel surcharge, which is calculated through a base rate that is usually added to a shipper’s freight bill.AP Photo/Rogelio V. Solis
  • Truckers are sounding the alarm on skyrocketing diesel prices.
  • A trucking company owner went viral after warning prices could cause major supply-chain issues.
  • Truckers told Insider they’ve had to take loads at a loss and are considering leaving the industry.

A Facebook post from the owner of a Texas trucking company went viral last week after he warned that skyrocketing diesel prices could have longterm consequences for the US supply-chain.

Austin Smith, owner of Iron River Express, said it has cost him over $20,000 a week to keep his three trucks running.

“If something drastic doesn’t change in the next few weeks/months, I promise you, you’ll see empty shelves everywhere you look,” Smith wrote in a post that was shared nearly 290,000 times. “You’ll see chaos as people fight for the basic necessities of everyday life.”

Smith did not respond to a request for comment from Insider in time for publication.

Insider spoke with five truckers who warned that the industry could be at a breaking point. The drivers say they’ve had to get creative in recent months as they work to turn a profit while spending thousands at the pump.

Richard Resek, a trucker based out of ports in New York and New Jersey, told Insider he’s turning off his truck and rolling down his window instead of using air conditioning during long summer nights. He also plots out gas stations with the cheapest fuel prices.

…click on the above link to read the rest of the article…

Supply Chain Failures Prove Growing Need for Localized Economies

What we never hear is the fact that these crises are, in fact, connected. They are symptoms of a global economic system that is not only driving up resource use and pollution; it is squeezing people financially, undermining democracy, concentrating wealth and power in the hands of unaccountable global corporations, and exacerbating conflict and violence.

In addition, recent events have highlighted how vulnerable we are because of our dependence on the global economy. Long-distance supply chains are failing around the world, and the cost of living is skyrocketing as a result.

This is clearest when it comes to our most basic need of all: food. At the grocery store, Americans are paying 10 percent more for food than a year ago, while the United Nations Food and Agriculture Organization reports that global food prices hit record highs in March. In the United Kingdom, the price of chicken is set to soon match the price of beef.

Why? Largely because economic globalization — which, in short, involves using public monies and government regulations to favor exports over self-reliance — has ensured that we source our food from ever farther away, via ever longer, more complicated supply chains.

…click on the above link to read the rest of the article…

3 Sustainable Ways To Reduce Your Dependence on the Supply Chain

It’s no secret that the supply chain disruptions have created global impacts on us. Many of us are feeling the burn of soaring food prices and are ready to do what is necessary to continue to feed our families. It’s not about choice, it’s about survival, and now is the time to take the necessary steps to ensure you can make it when the entire food supply system crashes.

One of the easiest ways to reduce your dependence on the supply chain is to start finding ways to phase out food sourcing and make it a priority! That means you will need to be innovative and think of other ways food can be acquired than just going to the grocery store.

23 Things You Can Forage For From April to June

Create more sustainability around your life and you learn to live more simply in the process. You will realize how much you actually have and other ways of putting items to use. As well, as building a more localized food supply. You will also be reducing greenhouse gases due to the gas used to distribute fresh produce. This also boosts local economies and strengthens food security locally, which is where the focus needs to be. Quite honestly, it’s already around you – you just have to know where to find it.

  1. FORAGE: A simple way to start is to learn how to forage for edible plants. These plants live all around us, are abundant, and better yet; are free! Not only that, these edible plants can be medicinal and will have a lot of nutritional value! Here are some food freebies you can find in your own backyard.

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Supply chains are never returning to ‘normal’

Supply chains are never returning to ‘normal’ 

The conventional wisdom at this time is that most of the world has moved on from the pandemic (except for China); therefore, supply chains will return to “normal.” Unfortunately, this is not the case. The world has permanently changed and supply chains are going to face continuing challenges for decades to come. Among those challenges are:

  • Supply chains will remain under constant threat of disruption for the next decade
  • Supply chains operate best when the world is peaceful and stable
  • A smoothly running supply chain requires “buffer stock,” which is challenging with declining population demographics
  • There is a conflict between environmental, social and governance (ESG) goals and supply chains optimized for cost and speed. If we prioritize ESG, we will need to contend with supply chain risks
  • Supply chain technology will become the big venture capital category winner as companies continue to make investments in technologies that can help them mitigate their supply chain challenges

In a world faced with the prospect of tightening supplies, higher energy costs, heightened geopolitical risk, and strained transportation networks, advanced supply chain technologies will become mission-critical for many more companies.

Image of U.S. and Chinese flags, with a rupture between them indicating conflict.
U.S.-China relations have become very tense in recent years as China flexes its new economic muscle in other arenas.
(Image: Shutterstock)

Supply chains benefit from times of peace

Anyone that has been a part of the supply chain industry can attest to the fact that supply chains have always been subject to disruptions. Natural disasters, terrorism, economic cycles, and capacity shortages have created challenges since the beginning of trade.

Since the end of the Cold War, global supply chains have benefited from peaceful trade between developed and developing countries…

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35 Signs That Show The Supply Chain Is Dying Right In Front Of Our Eyes

35 Signs That Show The Supply Chain Is Dying Right In Front Of Our Eyes

India isn’t the only one banning food exports. These countries are doing the same

  • The war has triggered a huge spike in wheat prices, with Russia and Ukraine among the biggest exporters of the commodity. Many countries have banned wheat, as well as other food exports as a result of the Ukraine crisis.
  • “As the war continues, there is a growing likelihood that food shortages, particularly of grains and vegetable oils, will become acute, leading more countries to turn to restrictions on trade,” said the International Food Policy Research Institute.
  • Here’s a list of countries that have banned food exports in the months after the Russia-Ukraine war started, according to a live tracker developed by the International Food Policy Research Institute.
Workers unload wheat sacks from a truck at a Punjab Grains Procurement Corp. facility in the Ludhiana district of Punjab, India, on Sunday, May 1, 2022.
India has banned wheat exports as the price of grain surged this year due in part to the Russia-Ukraine war.
T. Narayan | Bloomberg | Getty Images

India has banned wheat exports, becoming the latest country to do so as the price of grain surged this year due in part to the Russia-Ukraine war.

The war has triggered a huge spike in wheat prices, with Russia and Ukraine among the biggest exporters of the commodity. Both countries account for 29% of global wheat exports, according to the World Bank.

“With food prices already high due to COVID-related supply chain disruptions and drought-reduced yields last year, Russia’s invasion came at a bad time for global food markets,” said the International Food Policy Research Institute (IFPRI) in an April note.

Washington D.C.-based think-tank the Peterson Institute for International Economics added in a recent note that Russia’s war on Ukraine has “taken a shocking toll on the region.” “It has also contributed to a global food crisis, as Russia is blocking vital fertilizer exports needed by farmers elsewhere, and Ukraine’s role as the breadbasket for Africa and the Middle East has been destroyed.”

…click on the above link to read the rest of the article…

Supply Chain Congestion Set To Worsen As Container Rates Rebound On Easing China Lockdowns 

Supply Chain Congestion Set To Worsen As Container Rates Rebound On Easing China Lockdowns 

Update (Friday): The locked-down megacity of Shanghai eased pandemic restrictions this week and will see public transportation networks reopen as soon as Sunday. After two months, the city of 26 million people appears to have contained the spread of COVID-19 via China’s zero COVID policy.

Restarting Beijing could be problematic for the rest of the world. We laid this out Thursday. The city’s lockdown and reduced port capacity created a massive backlog of products that need to be loaded on container ships and hauled westward.

Maersk and Goldman Sachs (in two separate reports) outlined the immediate restart of Beijing would create renewed global supply chain congestion.

We told readers to monitor trans-Pacific container freight rates closely as a proxy for China’s restart.

New data from Fearnley Securities indicates container rates have finally rebounded after slumping for much of this year. This is an early indication that economic activity in Shanghai could be increasing as pandemic restrictions ease.

Fearnley’s Peder Nicolai Jarlsby expects a surge in freight volumes as container rates increase. He added this would be a bullish development for shares of A.P. Møller – Maersk A/S, the world’s largest container shipping company by capacity, and shipper Hapag-Lloyd.

Focusing on 40ft container freight rates on the Shanghai-Los Angeles shipping lane, prices have found higher lows and appear to be turning up after a 30% decline since peaking last September.

Goldman warned earlier this week: “We could see a resurgence of ship bottlenecks if sudden restarts in China lead to renewed sailings all at once.”

And if that’s the case, container rates for major shipping lines in the trans-Pacific region could increase more as shipping volumes surge. This would mean renewed supply chain congestion could hit US shores in late summer, perfect timing ahead of the US midterm elections.

…click on the above link to read the rest of the article…

Now We Are Being Told To Expect Food And Diesel Shortages For The Foreseeable Future

Now We Are Being Told To Expect Food And Diesel Shortages For The Foreseeable Future

If you think that the food and diesel shortages are bad now, then you will be absolutely horrified by what the globe is experiencing by the end of the year.  All over the planet, food production is being crippled by an unprecedented confluence of factors.  The war in Ukraine, extremely bizarre weather patterns, nightmarish plagues and a historic fertilizer crisis have combined to create a “perfect storm” that isn’t going away any time soon.  As a result, the food that won’t be grown in 2022 will become an extremely severe global problem by the end of this calendar year.  Global wheat prices have already risen by more than 40 percent since the start of 2022, but this is just the beginning.  Meanwhile, we are facing unthinkable diesel fuel shortages in the United States this summer, and as you will see below there are “no plans” to increase refining capacity in this country for the foreseeable future.

If you had told me six months ago that we would be dealing with the worst baby formula shortage in U.S. history in the middle of 2022, I am not sure that I would have believed you.

But that is precisely what we are now facing.  One young couple in Florida searched stores in their area for four hours and couldn’t find anything

When Erik and Kelly Schmidt, both 35, went into a Central Florida Target store this week to buy their usual baby formula, Up & Up Gentle, for their five-month-old twins, they found an empty shelf.

The pair then embarked on a half-day journey in search of formula, any formula, and their quest didn’t end there. “We spent over four hours going to every Target, different Walmarts, different grocery stores, just finding absolutely nothing,” Erik Schmidt said.

…click on the above link to read the rest of the article…

Will You Starve to Death This Year?

Will You Starve to Death This Year?

World’s Largest Fertilizer Company Warns Crop Nutrient Disruptions Through 2023

World’s Largest Fertilizer Company Warns Crop Nutrient Disruptions Through 2023

The world’s largest fertilizer company warned supply disruptions could extend into 2023. A bulk of the world’s supply has been taken offline due to the invasion of Ukraine by Russia. This has sparked soaring prices and shortages of crop nutrients in top growing areas worldwide; an early indication of a global food crisis could be in the beginning innings.

Bloomberg reports Canada-based Nutrien Ltd.’s CEO Ken Seitz told investors on Tuesday during a conference call that he expects to increase potash production following supply disruptions in Russia and Ukraine (both major fertilizer suppliers). Seitz expects disruptions “could last well beyond 2022.”

Seitz said the conflict plus Western sanctions on Russia and Belarus has reduced fertilizer supply on global markets and could reshape crop nutrient trade, thus creating even more supply uncertainty.

“Could there be a change in global trade patterns as a result? We think that’s a possibility,” he said. 

Fertilizer disruptions could be a multi-year event. Already, farmers worldwide are reducing fertilizers, which may threaten yields come harvest time. The repercussions could be huge: Lower yields may exacerbate the food crisis. 

Here are the latest signs commercial farmers worldwide are reducing fertilizer usage because of higher prices or shortages.

Revealed last week, SLC Agricola SA, one of Brazil’s largest farming operations, managing fields of soybeans, corn, and cotton fields in an area larger than the state of Delaware, will reduce the use of fertilizer by 20% and 25%

Coffee farmers in Brazil, Nicaragua, Guatemala, and Costa Rica, some of the largest coffee-producing countries, are expected to spread less fertilizer because of high costs and shortages. A coffee cooperative representing 1,200 farmers in Costa Rica predicts coffee output could slip 15% next year because of soaring fertilizer costs. 

…click on the above link to read the rest of the article…

U.S. East Coast Diesel Supply Is Running on Fumes

Last week, East coast inventories of diesel plunged to the lowest seasonal level since government records started more than 30 years ago. The shortage caused a crisis in the diesel market, sending wholesale and retail diesel prices to an all-time high. Diesel is today more expensive in America that it was in 2008, when the price of crude oil surged to nearly $150 a barrel compared with little more than $100 currently.

Diesel is the workhorse of the global economy. It’s used everywhere to keep trucks, tractors, freight trains and factories moving. And its ubiquity means the increase in its price will exacerbate global inflationary pressures.From central bank interest rates to supermarket prices, a lot hinges on diesel. On Tuesday, average U.S. retail diesel prices posted the fifth-consecutive fresh daily record, surging above $5.3 per gallon, up nearly 75% from a year ago. The price spike is worse on the Eastern seaboard, where diesel retails now for more than $6 per gallon, nearly double 2021’s price.The oil tanks in New York harbor are nearly empty for reasons both global and local. Around the world, diesel is in short supply as demand has surged well above pre-Covid levels, spurred by a boom in freight…

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SHTF! You HAVE TO HEAR What This TRUCKING INSIDER said to ME! PREP NOW!

SHTF! You HAVE TO HEAR What This TRUCKING INSIDER said to ME! PREP NOW!

Shortages of a Few Items Now Will Evolve Into Shortages of Hundreds of Products Later in 2022

Shortages of a Few Items Now Will Evolve Into Shortages of Hundreds of Products Later in 2022

 

Container Shipping Supply Chain Faces The Deepest Crisis Ever As Massive Disruptions Emerge

The Gathering Stagflationary Storm

roubini163_STEFANI REYNOLDSAFP via Getty Images_gas pricesSTEFANI REYNOLDS/AFP via Getty Images

The Gathering Stagflationary Storm

While recent shocks have made the current inflationary surge and growth slowdown more acute, they are hardly the global economy’s only problems. Even without them, the medium-term outlook would be darkening, owing to a broad range of economic, political, environmental, and demographic trends.

NEW YORK – The new reality with which many advanced economies and emerging markets must reckon is higher inflation and slowing economic growth. And a big reason for the current bout of stagflation is a series of negative aggregate supply shocks that have curtailed production and increased costs.

This should come as no surprise. The COVID-19 pandemic forced many sectors to lock down, disrupted global supply chains, and produced an apparently persistent reduction in labor supply, especially in the United States. Then came  of Ukraine, which has driven up the price of energy, industrial metals, food, and fertilizers. And now, China has ordered  in major economic hubs such as Shanghai, causing additional supply-chain disruptions and transport bottlenecks.

But even without these important short-term factors, the medium-term outlook would be darkening. There are many reasons to worry that today’s  will continue to characterize the global economy, producing higher inflation, lower growth, and possibly recessions in many economies.

For starters, since the global financial crisis, there has been a retreat from globalization and a return to various forms of protectionism. This reflects geopolitical factors and domestic political motivations in countries where large cohorts of the population feel “left behind.” Rising geopolitical tensions and the supply-chain trauma left by the pandemic are likely to lead to more reshoring of manufacturing from China and emerging markets to advanced economies – or at least near-shoring (or “friend-shoring”) to clusters of politically allied countries. Either way, production will be misallocated to higher-cost regions and countries.

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