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The Real Reason for Supply Shortages
It has nothing to do with container ships.
If you watch, read, or listen to any news source recently, you’ll find a story about major product shortages. According to most media outlets, the crux of the problem has been the real-time nightmare unfolding in the shipping and logistics industry.
They’ll point to things like the record 73 containers ships were waiting to be unloaded outside the ports of Los Angeles and Long Beach in Southern California to explain why Costco is putting a limit on toilet paper purchases, again.
While TP is necessary, it’s also a low cost item that most everyone can get if they need to. Just ask a neighbor.
What you can’t borrow is the several computer chips that go into that new car you’re thinking about purchasing. (Okay, maybe not you or me, but the rich person who wants to buy a new car so we can buy a used one.)
Again, they’ll say that logistics are the issue and that we just need to wait until things smooth out and go back to normal. There are two problems with this sentiment.
- There is no going back to normal.
- Shipping is not causing the shortages.
