Posted by Gary Mitchell on November 10, 2021 at 08:59:35 from (67.6.85.79):
Somewhere around 40 years ago a thing called Just in Time, delivery or JIT, started taking ahold in the manufacturing and retail world. What it amounted to was to order sales stock or mfg. components JIT to stock shelves or build products with a bare minimum of warehousing. The practice of trying to order just barely what one intended to sell, or use to build things, kept inventory's low, hence, lower space needed for storage, less tax paid on stock on hand, and less interest to pay on $ borrowed to use for business.
Anyone in the trucking business is likely aware that come the end of the fiscal year, everyone wants their stuff shipped out by the end of the year and nobody wants to receive much freight before the new business year starts. This always led to a trailer shortage in the common carrier end of trucking every year, at least during my tenure. I'd say with the entire global economy practicing JIT in some form, to some degree, with lots of people being at home and ordering things online rather than shopping at centrally located big box stores, etc, the bottleneck started with that phenomena and snowballed from there.
It isn't hard to imagine if you give it some thought. The world's delivery system is set up to deliver just what people want, just in time for when they want it, and when demand makes an unprecedented leap that no one expected, coupled with the covid induced labor shortage, it's kind of like slugging a combine. I expect that when demand is sated shortages will fade away. gm
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