Experts warn global economy heading for “mother of all” supply chain issues as China locks down


The content contained herein contains editorial commentary which is the opinion of the writer.

Over the past few months, we have seen bare store shelves courtesy of supply chain issues. Many have warned for years that the United States was vulnerable as our manufacturing left our shores and went overseas.

For four years starting in 2017, former President Trump was attempting to bring manufacturing back home. Unfortunately, that was derailed after Trump lost last November’s election.

Aside from the supply chain issues, ZeroHedge that another issue may haunt the United States.

They note that over the past several weeks, Wall Street has become optimistic on US growth going forward, along with the Fed, that despite economic numbers continually showing the opposite.

That optimism has led the Fed to signal interest rate hikes, maybe as soon as March.

Alarm bells have been ringing however after the Fed last year stated the belief that inflation was only “transitory,” which turned out to be a fallacy. Current indications are we are in this for a while.

ZeroHedge warns that the Fed is poised to make not one more mistake but possibly several more—up to four—by hiking interest rates that number of times.

Combined with trying to pay off a “massive balance sheet,” all of this comes as growth on a global scale is slowing dramatically.

The one place beside the United States where a growth slowdown could prove especially troubling is in China.

Taken in combination with a deterioration in US consumption, and increased use of credit cards is helping to support current funding and is due for a “bubble,” we now have China, pursuing a “covid-zero” policy as well as looking to lockdown ports, again due to covid.

All of this, ZeroHedge reports spells big trouble.

Once a lone voice warning of China’s impending Covid-zero policy, now Bloomberg is joining in on warning that restrictions implemented by Beijing “are starting to hit supply chains in the region.”

As Bloomberg warns, the world economy could be headed for the “mother of all” supply chain issues.



Over the past several weeks, the omicron variant of Covid has been spreading across the United States, with a record number of Americans testing positive for the variant this week on at least one day.

Bloomberg reports that if the variant spreads across Asia, China in particular, it would result in a significant disruption in manufacturing. HSBC economists this week wrote that the disruption would be “temporary, one would hope, but hugely disruptive all the same” in the next few months.

As is, movement of goods through some of the busiest and important ports have seen shipping traffic slowed significantly, with a number of shippers now diverting to Shanghai.

It was bottlenecks such as these which eventually led to hundreds of container ships waiting off the coast of California to unload, a situation which still continues to this day.

For example, in November, there were some 80 ships offshore waiting to unload, while as of Jan 6, there were 105 ships waiting.

ZeroHedge reports that sailing schedules are already facing delays of about a week, which has freight forwarders warning of the impact on already clogged gateways both in the United States and Europe.

Last year, China locked down its ports for several days, which led to what ZeroHedge calls “an unprecedented hiccup in global logistics and shipping” which exists today.

Omicron has had relatively little impact in China compared to the West, but of course that is dependent on China actually giving accurate information. That said, Chinese officials are being cautious in order to reach their desire of zero Covid.

Scattered infections in China of both the delta and omicron variants have already seen China shut down clothing factories and cease gas deliveries in the vicinity of one of China’s largest seaports, Ningbo.

In addition, disruptions have occurred at computer chip manufacturers in Xi’an and a city-wide lockdown in Henan province Tuesday, ZeroHedge says.

Bloomberg says that any continued increases in cases in that region, it could impact the supply of iPhones and other smartphones, Bloomberg Intelligence analysts say.

Covid zero, which given the transmissibility of the omicron variant seems like a fool’s errand, yet it is something the communist nation is pursuing.

While such a policy helps to contain virus spread to a degree, it causes significant disruptions and lockdowns while officials limit the movement of people.

Repeated mandatory testing of whole cities, for example, disrupt business and production, yet the issue is nowhere near as bad as currently exists in the United States, where last week some five million people stayed home sick.

However, the news from China isn’t encouraging, with some predictions saying that China’s covid outbreak this winter could be worse than last year.

Also, the number of new cases has been larger this year in the country, and the provinces hit by the outbreaks this  year also have a higher GDP and population density.

Bloomberg noted that a number of companies are attempting to mitigate their risk by looking at alternative production facilities, according to Stephanie Krishnan, a supply chain expert at IDC in Singapore.

“We are starting to see companies mitigating risk, seeing where they can increase capabilities for production of different products in different factories so they can shift that around,” she said.

Krishnan also warned that there isn’t currently any light at the end of the tunnel, saying she doesn’t see an end to the global supply crunch anytime soon. She further cautioned that it could take several years for the current supply crunch to unwind.

This is a contrast to the optimism that many felt about the new year, hoping the so-called “Big Crunch” would be winding down, a situation which plagued both producers and consumers for much of 2021.

China’s ability to control the virus will be absolutely critical, said Deborah Elms, executive director of the Singapore-based Asian Trade Centre.

She noted that companies who don’t have supply chains centered in China may be able to avoid issues relative to China’s covid mitigation strategy.

Unfortunately, that won’t apply to everyone and certainly won’t apply to the United States, which relies heavily on China for a lot of our goods.

“Lots of products in supply chains come from outside China,” Elms said. “Given challenges elsewhere, even zero Covid doesn’t solve all the issues of disruption.”

ZeroHedge notes that all of this will make the job of the Fed extremely difficult in the coming months. A rise in interest rates is seen as a hedge against inflation, however as ZeroHedge notes, much of the inflation today is being generated on the supply side.

However, if there is a “surprise” drop in growth in the next few months, the Fed will have to delay or stagger its tightening strategy.

If they time this incorrectly, they would be hiking interest rates into a recession which will mean they would have to revert to easing again. This is referred to as a “bull-whip” effect.

Two men arrested and charged with the attempted murder of a Chicago cop after shooting him during a traffic stop

LONG BEACH, CA- Let’s just call the Biden administration thus far “Nine Months of Crises.” With this guy, it’s literally been one cluster f*ck after another. Worse yet, this administration doesn’t appear to have a plan.

The current crisis finds hundreds of container ships stranded outside ports in Los Angeles and Long Beach, California and New York and New Jersey on the east coast.

On Tuesday, the White House told Reuters in an interview that Americans should be aware “there will be things you can’t get” in time for Christmas, as the latest Biden blunder is causing supply chain issues across the country.

Refusing to accept accountability for anything, the unnamed official Reuters spoke to merely suggested Americans might want to purchase goods that are available.

“At the same time, a lot of these goods are hopefully substitutable by other things […] I don’t think there’s any real reason to be panicked, but we all feel the frustration and there’s a certain need for patience to help get through a relatively short period of time,” the official said.

Officials who spoke with Reuters said that inflation has impacted families’ ability to obtain everything they need, especially goods with high consumer demand.

“We recognize that it has pinched families who are trying to get back to some semblance of normalcy as we move into the later stages of the pandemic,” the unnamed official said.

The administration, which has been asleep at the switch for the past couple of weeks and basically ignoring the situation said they are hopeful that “port operators, transportation companies and labor unions” will work longer hours to unload ships and transport cargo across the country to fill empty store shelves, Politico said.

However, it may be too late to do so according to Steve Pasierb, president and chief executive of the Toy Association in a statement to Politico.

“There’s no political intervention that’s going to get this done, and there may not be a human intervention that gets this done because this issue is now going to last well into next year,” he said.

The admonishment from the White House came as container ships holding tens of thousands of shipping containers remain backlogged at ports on both coasts. According to reports, there are 65 cargo ships waiting outside the Los Angeles port, which is currently full. In addition, 8,000 shipping containers are stuck at the Port of Savannah.

Meanwhile, Coresight Research Founder and CEO Deborah Weinswig made an ominous prediction, saying she believes the supply chain issues will linger past next year and into 2023.

“Let’s look at the math: It’s 14 days to get a container from APAC  [Asia-Pacific] to the U.S. and 40 days for it to get back,” she told Yahoo Finance. “And we have a complete container misalignment right now. So that’s 80 days, we’re talking, in our opinion—we’re probably looking at Q1 2023 before all of those containers get back and realign.”

“This is not just a holiday challenge—which it is acute, probably the worst I’ve ever seen,” she continued. “I think that this continues. And that is where we’re going to see innovation and new jobs created, but we’re still really short right now.”

All of these issues have exposed the ineptitude and inexperience of Transportation Secretary Pete Buttigieg, the failed mayor of South Bend, Indiana, a city of 103,000 people who saw himself as worthy of being president. Failing at that, he found himself nominated by Biden to the transportation post.

And why wouldn’t he be? After all, as Joe Concha of The Hill points out, South Bend has a fleet of some 60 buses, a small train station and a small regional airport. So clearly, Buttigieg had the “experience” to manage the Department of Transportation, which has over 58,000 employees and a budget of & 87 billion.

Buttigieg has basically done nothing over the first nine months. Oh, he came out when the infrastructure bill was first proposed and talked about “systemically racist” highways…or something. He was all over the news as he and his “husband” adopted a couple of kids, which had the media in orgasmic delight.

But now? Old “Mayor Pete” has himself a genuine crisis to deal with, and clearly, as Concha points out, he is in way over his head.

Expanding on the above, the Washington Post in a tweet broke down the supply chain nightmare facing the country.

“Ships wait off the California coast, unable to unload their cargo. Truckers are overworked and overwhelmed, often confronting logjams. Rail yards have also been clogged, with trains at one point backed up 25 miles outside a key Chicago facility,” they said last Sunday.

Part of the issue, Concha notes is a labor shortage which has not only affected the transportation industry but has impacted industries and businesses across the board. There is a shortage of workers to offload ships, and truck drivers to get the goods to where they need to go. This is nothing new during Biden’s ill-fated, incompetent term since this has been ongoing for ten months. Nobody in the administration is able to explain it, least of all Labor Secretary Marty Walsh, former Boston mayor.

So what of Buttigieg? Surely the media must be curious what old “Mayor Pete” is doing to deal with the crisis, right?

Concha said he did a quick Google search of Buttigieg and used the “News” option. People Magazine, USA Today, and NBC News all were concerned only about his adoption of twins. Business Insider was waxing poetic about another possible presidential run, while only Fox News questioned what the hell he was doing about the supply chain issues.

The issue was finally addressed last week by Buttigieg, where all he said is the “challenges” would continue possibly for years and then turned to pitch the stalled $3.5 trillion socialist reformation of America plan touted as an “infrastructure” package.

“These challenges are definitely going to continue in the months and years ahead,” Buttigieg said. “This is one more reason why we do need to deliver this infrastructure package, so that we can have a more resilient, flexible physical infrastructure to support our supply chain in this country.”

Fine and dandy, Concha notes. “What is Buttigieg doing *right now* to address the crisis?” he asked.

Well, apparently there is a “task force” set up by the White House. He then tried to place blame at least in part on “private sector systems,” and then said the federal government has been doing such apparently useless things such as holding “roundtables” and talking to people.

Kind of like Kamala Harris’s “attacking” the issues at the border, Concha mused. Lots of fluff, not much substance. Actually in the case of Harris, there really hasn’t been fluff…just a bunch of vapid talk about “root causes.”

The best way to address Buttigieg’s amateur inexperience, Concha said, is brought to us by old Sleepy Joe himself…an attack ad from the 2020 presidential campaign mocking Buttigieg’s inexperience.

Then, after mocking Buttigieg Biden then went on to nominate him not for official White House dog catcher, or maybe West Wing interior decorator…no he nominated him to be Transportation Secretary, clearly payback for Mayor Pete immediately giving Biden his endorsement after dropping out of his laughable campaign for president.

To quote Concha:

“Qualifications? Who needs them?”

Especially in the midst of one of the biggest transportation and supply chain crises in our history.

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In case you missed our previous report on the supply chain issues, we invite you to:


WASHINGTON, D.C.- According to reports, President Joe Biden continues to struggle to meet the immediate challenge of clogged sea ports, as American consumers face major shortages ahead of the winter holiday season.

This is nothing new as the president has been well aware of the problems for the last several months, promising back in August to monitor the situation and “offer solutions.” On August 11th, Biden said in a statement:

“My administration is bringing together the port operators, shipping lines, the labor unions, trucking companies, railroads, and others to seed up the port’s operations.”

He added:

“Right now, our experts believe — the major independent forecasters agree as well — that these bottlenecks and price spikes will reduce as our economy continues to heal.”

On August 21st, Biden appointed John D. Porcari as a “Port Envoy” for the administration. He will reportedly be joining Transportation Secretary Pete Buttigieg to try and solve the shipping problems. Yet, two months later, ports delays are still happening.

According to reports from the weekend of October 9th-10th, there are 146 cargo ships off the California coast waiting to get unloaded. The Marine Exchange of Southern California said that one ship waiting offshore arrived from Asia on September 5th.

There are 76 container ships carrying clothes, furniture and electronics that have been stuck at ports in Los Angeles and Long Beach for nearly three months. They’re carrying 14,000 containers with about $100,000 of merchandise each.

During an interview with MSNBC’s Morning Joe on Thursday, October 7th, Buttigieg struggled to offer any reassurance that the Biden administration was making any sort of progress as the problem continues to worsen. 

He admitted that it is an “incredibly complicated situation,” posing that the government was handling the problem by holding video conference “roundtables” of private companies, port operators, and labor unions to discuss the issues.

He argued that his department was making short term gains, but warned Americans that it was a long term problem. He said:

“We’re going to continue to see a lot of challenges. Not just going into the next year or two, but going into the long term.”

During the daily press briefing on Friday, October 8th, White House press secretary, Jen Psaki also struggled to demonstrate any progress on the issue. She said:

“The president recognizes that there are several, several layers of the challenge here that contribute to the bottleneck.”

Psaki argued that Biden’s appointment of a “port envoy” was “proof” that the administration was handling the crisis. She said:

“The fact that he designated and appointed someone at that level with a range of vast experience shows that this is a part of the issue we’re absolutely focused on.”

In addition to what is happening on the coast of California, there are reportedly 80,000 shipping containers stuck at the port of Savannah, which is a full 50 percent more than normal. 

Steal containers are just waiting for either trucks to carry them to warehouses or ships to take them to another port, but like Savannah, other ports are also full. As a result, some “700 containers” have been left at the port, on the banks of the Savannah River, by their owners for “a month or more.”

Executive Director of the Georgia Ports Authority, Griff Lynch, said that the Port of Savannah has never been this full before. He added:

“We’ve never had the yard as full as this. They’re not coming to get their freight. The stress level has never been higher.”

Due to the jam, Lynch said he has forced cargo ships to wait to dock for nine days. He said the backlog of ships was more than 20 waiting in line and anchored 17 miles off the coast. He added:

“The supply chain is overwhelmed and inundated. It’s not sustainable at this point. Everything is out of whack.”

Another challenge for the ports have been a truck driver shortage. Without drives, many of the items American families depend on remain undelivered to points of purchase. 

The situation has also been compounded by Democrat-controlled states paying people not to work through large unemployment checks. These checks are in addition to federal government unemployment checks, which result in reducing the supply of labor. 

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Manufactured crisis? Container ships anchored off LA, NY looking at a 4-week wait to offload their goods

October 4th, 2021

PORT OF LOS ANGELES, CA- If you’ve tried to buy parts for your vehicle or camper, electronic equipment or appliances, or even a new sink for your bathroom renovation over the past couple of months, you’ve likely been advised it may take weeks, if not months for your product to get in.

Much of that can be attributed to the number of cargo ships laying anchor off the coast of California or New York/New Jersey.


Let’s just call this another Biden crisis in nearly nine months of crises.

From the bungled Afghanistan withdrawal to skyrocketing energy and consumer goods prices and over to exploding crime and a border crisis of his own doing, Biden is dealing with one crisis piled on top of another.

Now we’re learning that container ships holding vital goods may have to wait at anchor for up to four weeks go make it into port to unload, Breitbart reports.

“Dozens of cargo ships anchored off the coasts of Los Angeles and New York face shocking wait times of up to four weeks and railyards and trucking routes are hopelessly clogged due to the lack of manpower to unload goods,” Breitbart said, citing a report in the Daily Mail.

A number of factors are playing into the situation, including increased consumer demand in the wake of the pandemic, as well as Americans spending less on travel and entertainment, while redirecting their spending toward toys, clothing, electronics and a large variety of other goods.

However draconian Covid restrictions have significantly impacted manpower and ports have been unable to unload the container ships.

“Global infrastructure was not designed to handle goods at such a rate,” one expert told the Daily Mail. “Supply chains are the artery who feeds our entire ecosystem. The government needs to intervene to stop this crisis immediately, or face increased inflation and unemployment, and economic breakdown—or face an end to global trade.”

The current logjam in the ports has billions of dollars-worth of toys, clothing, electronics, vehicles and furniture sitting in containers on container ships moored at sea.


The Mail reported they obtained footage which showed more than a dozen cargo ships at anchor outside New York’s harbor as they waited to come in and offload their cargo.

In addition, Ports in Los Angeles and Long Beach, which are among the most popular shipping destinations in the U.S. have vessels awaiting that have been at anchor outside the respective harbors for four weeks.

Earlier last month, there were as many as 73 vessels waiting to unload, with 66 container ships still at anchor last week, the Marine Exchange of Southern California said as reported by the Wall Street Journal.

As CBS Los Angeles recently reported, there are approximately half a million shipping containers on ships at anchor off the California coast, with truck drivers waiting in line for hours waiting to pick up their scheduled shipments.

Experts warn global economy heading for "mother of all" supply chain issues as China locks down
Stranded container ships-Rumble screenshot

“I’ve got friends right now that are in line…from nine o’clock in the morning and they can’t pull the load yet,” said one truck driver, Walter Martinez in a statement to CBS News. “The people inside, they get paid by the hour, but not the drivers.”

Another driver, Oscar Ovalle said he waited from 8 p.m. until 3 a.m. the next day with only one crane offloading containers for 60 trucks.

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“They kicked me out because they leave at three o’clock,” railed Ovalle. “There’s one crane for 60 trucks and it’s ridiculous! They have two other cranes sitting.”

In New York and New Jersey, the Port Authority described their operations as “strong.”

‘There are no labor shortages or significant shipping backlogs,” according to a spokesman.

He added that as of last Friday, there were only three ships remaining anchored off the coast.

“Year to date, container vessels have averaged just 1.3 days at anchor. Dwell time has been running about twice normal throughout the pandemic. During September, and throughout the pandemic, the port has performed extraordinarily well in keeping the supply chain moving throughout region, as well as cargo bound for the Midwest via rail.

“It has remained open, operational, and fluid—a testament to the hard-working men and women of the International Longshoremen’s Association and the drayage truck drivers who have not missed a single day since the beginning of the pandemic and have been on the front lines keeping commerce moving.”

In Los Angeles, ports are expected to process a record 10.8 million containers this year alone, which will lead to a struggle in getting the products to consumers.

Mike Perdue, president of ILWU Local 63 told the Washington Post, “Our members are tired. Our members are feeling the pain of these COVID deaths.”

Twenty members of the ILWU died of COVID-19 during the pandemic, which has forced the union to hire new, and inexperienced workers to deal with the demand.

Experts warn global economy heading for "mother of all" supply chain issues as China locks down
Trucks offloading container ships Port of LA-Rumble screenshot

The logjam at the ports has also had a domino effect, with the Chicago railyards, one of the country’s largest at the size of 500 football fields, at one point backed up for 25 miles.

Experts warn global economy heading for "mother of all" supply chain issues as China locks down
Chicago Rail Yards face congestion-YouTube screenshot

Meanwhile, at APM terminals, a 484-acre facility in Los Angeles, which has the largest container site in the Western Hemisphere, the managing director of the facility said the facility is struggling to keep up with the influx of products at the same time they are dealing with a shortage of workers.

“It’s a headache. Cargo is sitting here longer than planned,” said Steven Trombley, the facility’s managing director in a statement to the Post. “If I don’t get the cargo moving, then the next ship is not going to have space.”

Another issue, reflective of the coming inflation nightmare is the cost of shipping a container from China to the west coast of the U.S. Pre-pandemic, the cost per container was about $1,300. Now? About $35,000, or around 26 times more.

Some retailers have switched from sea transport to air transport, a much more expensive method of moving goods, costs which will no doubt be passed on to consumers. It has also resulted in increased congestion at airports, which has forced some retailers to charter aircraft to transport goods.

The Daily Mail noted the cost of chartering aircraft from Asia to the U.S. is approximately $2.5 million.

The situation with ports is causing concern that it could impact the Christmas shopping season, with some experts suggesting Americans should begin doing Christmas shopping now to make sure goods arrive in time.

A coalition of unions around the world have warned of an imminent collapse of the global transport system.

In an open letter last week, the groups warned that “fragmented and inconsistent pandemic restrictions around the world have thrown global shipping into chaos,” the Daily Mail reported.

“We are witnessing unprecedented disruptions and global delays and shortages on essential goods including electronics, food, fuel and medical supplies,” the groups warned.

The letter was signed by the union officials from IRU, the world road transport organization; IATA, the International Air Transport Association; ICS, the International Chamber of Shipping; and ITF, the International Transport Workers’ Federation.

The letter noted that due to “nearly two years’ worth of strain,” it was putting significant pressure on maritime and road transport workers, and also air crews.

“Flights have been restricted and aviation workers have faced the inconsistency of border, travel, restrictions, and vaccine restrictions/requirements,” the letter continued.

“Additional and systemic stopping at road borders has meant truck drivers have been forced to wait, sometimes weeks, before being able to complete their journeys and return home,” the workers said.

Meanwhile, the Executive Director of the Port of LA, Gene Seroka is asking the Federal Reserve to help out with the current crisis.

“Over the last 10 years, the federal government and Congress have out-invested West Coast ports at a rate of 11 to one. That’s got to change, and with an infrastructure bill pending vote in Congress this week, we need all eyes on Los Angeles,’ he said. “This is what 10 years of under-investment looks like and we need to move forward.”

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