Posted on 09/14/2021 5:59:06 AM PDT by blam
“We need to work out how we break this vicious circle,” which is leaving shelves empty of goods across the world, said Morten Engelstoft, chief executive of Maersk-owned APM Terminals.
In Engelstoft’s view, the crisis was created by surging demand putting strain on container groups, suppliers and logistics companies as they struggled to deliver goods.
The boss of one of the world’s largest port and terminal operators does have a solution – stop buying so much shit!
“We need lower [consumer demand] growth to give the supply chain time to catch up, or differently spread out growth. Over a long period of time, we will need to recover efficiency.”
As The FT reports, congested ports are being hit by a global shortage of truck drivers and constricted space at warehouses, causing further delays in deliveries disrupted by the Covid-19 crisis.
Brian Sondey, chief executive of Triton International, the world’s largest container leasing company, said container volumes were “too large to clear out during that window”.
“Consensus in the industry is we’re unlikely to see a cleaning up of the situation until deep into next year,” he added.
Mohamed El-Erian also sees these disruptions “will be with us for a while,” prompting producer pries to continue soaring around the world.
Fewer chief executives have confidence that such disruptions are temporary and quickly reversible. This will restrain growth plans despite robust demand, and increase pressure to raise prices to offset higher costs.
Rather than a one-off dynamic, the global economy is experiencing waves of supply disruptions suggesting that longer-term forces are also in play. Yet some policymakers and market participants continue to assert that supply-demand imbalances are transitory, soon to be resolved by market forces.
El-Erian warns that while there are some ‘reversible factors’, supply side troubles could last for one to two years, if not more, which translates into stagflationary winds for the global economy that are unfamiliar to those that did not live through the 1970s.
This could become an issue for many asset classes where valuations embody a considerable bet on the predictability and effectiveness of central bank support, including a monetary policy soft-landing in a Goldilocks economy that is not too hot or too cold.
Ah, so consumer demand is driving the lack of goods NOT the lack of inventory or the disastrous policies impacting shipping and trucking. Riight.
This is outright communist speak.
Oh noes - y’all have to stop buying things because it’s stressing me out!
Those who think they can “manage” an economy with central planning are the biggest fools of all.
I have a better idea: buy American instead of chicom sh**.
We should’ve made our own damn toys and sanctioned the chicoms since the beginning.
One would think there would be SO MUCH economic opportunity here.
Build more factories. Make more stuff. Drill baby, drill. Make more ships, containers and even new ports and port facilities.
Hum, hum, buzz, buzz. See the busy human bees always actively working. It used to be this way.
Has something changed?
Climate doom and gloom?
Laziness, the new white meat?
What?
The stupid lock downs followed by the stupid stimulus(es) - too much money chasing too few goods equals inflation, and inflated demand.
Too bad someone couldn't figure out a way to decrease consumer demand by decreasing the number of consumers. Less people buying things would fix everything. Then there would be plenty of "stuff" for the folks that really count. Oh wait....
Mohamed El-Erian - Obama lackey
Consumer demand is not the problem
Bad Government policy that has articfially inflated fuel prices, created an excess of money in the economy, a high labor demand and a high level of unemployment all at the same time is the problem
The Biden Demcorats plan to dump $3.5 trillion in new spending on the US Economy is not going to help
Bad Government policy that has articfially inflated fuel prices, created an excess of money in the economy, a high labor demand and a high level of unemployment all at the same time is the problem
The Biden Demcorats plan to dump $3.5 trillion in new spending on the US Economy is not going to help
It's as though the customer is being told their Bidenflation Dollars will buy them less of the solutions they need.
Morton Englestoft of Maersk knows full well that for the right price, Maersk will deliver anything you want.
UBI attitude.
In my life time, there was a time that you could go hungry if you didn't work.
Today, the non-workers eat better than the workers.
(To much food is killing people)
Overeducation / poorly educated college grads / social media destroying brains and productivity. Plus a giant pool of third world immigrants, some of whom may work hard but they’re working hard mowing lawns and cleaning hotel toilets. Not exactly the stuff of industrial might.
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