If you think things are bad economically now, hang on to your halo. We are facing a perfect storm for our supply chain within the next month unless several things change dramatically.
It’s been one thing after another ever since the Covid pandemic began to affect our supply chain back in 2020. To be clear, you don’t have to believe that a pandemic existed, that the virus was serious, or even that the virus existed. That isn’t what this article is about. Regardless of one’s feelings, it was a trigger for an economic disaster that has continued to snowball.
We watched the shelves in America get cleared in a day in March of that year, and things have never been the same since. Global shipping all but shut down.
And the prices went up.
Farmers could not harvest their food or get it processed and ready to be delivered to stores.
And the prices went up.
Then the cost of fuel skyrocketed.
And the prices went up.
And now, we’re facing a new challenge in what can only be described as a looming transportation collapse. Two things are slated to happen within the next month that could make what we’ve experienced so far look like a walk in the park.
1.) We have 25 days of diesel fuel left.
2.) Biden has failed to come to an agreement with rail workers’ unions, and a strike could start as soon as November 19th.
Let’s take a closer look at each of these factors.
The diesel fuel shortage
The diesel fuel shortage that is looming could be absolutely catastrophic. The fuel of trucks, trains, and ships – this could put a real kibosh on the transit of goods. What’s more, the diesel shortage also affects home heating fuel.
A shortage of diesel fuel is spreading across the United States, with one company launching an emergency delivery protocol, requesting a 72-hour advance notice from clients to be able to make the delivery.
Per a Bloomberg report, fuel supplier Mansfield Energy wrote in a note to its clients that “conditions are rapidly devolving” and “At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity.”
Some are blaming this shortage on a lack of refining capacity. If you look more closely at this, refineries are closing down in direct response to the current administration’s new policies to move the country to green energy.
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