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The big idea.
Supply chain issues that were there before the Pandemic have been brought to light and are now leading to widespread shortages of goods.
By the digits.
The companies that control the majority of global shipping.
Maersk, the world's largest shipping company, is expected to have a change in profits in 2021.
76 seconds is the average time it takes for a crane to load or unload a shipping container.
The average time it takes for a crane to load or unload a shipping container is 27 seconds.
The port of Los Angeles has cranes.
The port of Los Angeles will now be open for 24 hours a day.
According to a survey, 75% of restaurants have to change menu items due to supply chain issues.
The experts have their best guesses as to when supply chain issues will end.
Billion dollar question.
What is causing these shortages?
There are a few general causes for the different shortages.
There are changes in demand. People needed more and different things after the Pandemic. Even slight deviations in delicate supply chains would find industries ill prepared to meet consumer demand.
There are manufacturing issues. Less margin for error is the result of supply chains being more global and leaner. The manufacturing process has been disrupted by storms and lockdowns.
There are shipping constraints. Even though ships are bigger and carrying more cargo, space is limited. Workers at understaffed ports can't unpack the stuffed ships fast enough, while ports themselves are difficult to expand to meet the rising demand.
It is hard to know when the disruption will end because many things are in short supply.
The prices of shipping containers.
We are shipping containers as well as stuff that is in short supply. Their prices are going to go up.
Three key terms to make you sound smart.
Stagflation is a time when economic growth and joblessness coincide with rising inflation. Growth has picked up in the world's big economies as the global economy reopens. The worry is that higher prices on everything from a gallon of gasoline to an hour of labor could slow the recovery. The price increases could force central banks to raise borrowing costs at a faster clip to rein in inflation, placing even more drag on GDP expansion at a time when business confidence in the US and China signal a slowing of growth.
The supply chain can be affected by small shifts in demand for certain goods. Retailers make errors when they scale up their orders in response to expected demand because they can't predict the future. Wholesale suppliers make that mistake when they make their own orders. When manufacturers order raw materials from their suppliers, there is more error. Demand signals become distorted further up the supply chain.
A manufacturing approach designed to keep costs low by spreading out the supply chain globally and placing orders on an as-needed basis rather than stocking a large inventory was just in time. It presents its own risks, which could lead to a shortage or excess of product. The impact on prices, demand, production, and capacity could go on for years even if supply disruptions are short.
Person of interest.
Japan has a new minister of economic security. He said in his first news conference that he was tasked with making sure the Japanese government dealt with the economy and security as one. shoring up supply chains, securing critical infrastructure, protecting technological advantages, and counter economic espionage are some of the most pressing issues of the 21st century.
Fumio Kishida, the new prime minister of Japan, did not explicitly say the goal was to counter China. The country looms large.
Read more.
The most important question.
Does anyone have a chance against Amazon?
In the US at least, the company has been gobbling up an increasing share of retail, and with Covid-19 pushing more shoppers online, Amazon has only gotten stronger. The company used to prioritize growth over profit. US regulators fear that Amazon is so dominant that it should be regulated like a railroad.
Competition is still tough for Amazon. Walmart's network of more than 5,000 US stores has proved to be an advantage during the Pandemic.
By the digits.
In the US, retail space per capita is in square meters.
In China, retail space per capita is in square meters.
The Asia-Pacific region has a 75% share of the world's retail growth.
The share of e- commerce on phones in Asia-Pacific is expected to increase.
The share of e- commerce on phones in the US is expected to increase by 2020.
One large number.
The AMC Theatre in New York City was closed during the outbreak of the coronaviruses disease. The person is Brendan McDermid.
AMC Entertainment, the owner of the biggest theater chain in the world, has a market cap of $780 million. The theaters have been closed due to the Pandemic. AMC, which operates more than 1,000 theaters across 15 countries, was hit so hard that it warned of the possibility of bankruptcy just in time for its 100th anniversary. The box office is doing well. Japan's movie market is breaking records.
Disney has a pivot.
Disney built its mouse house on parks and box-office hits, but streaming looks to be its future. The company was already headed in that direction. Disney's theatrical and theme park businesses have been devastated by the Pandemic and will not recover to previous levels of profit. Disney+ attracted more than 60 million global subscribers less than a year after launch.
Quotable.
It is possible to raise very good grapes in Scotland and make very good wine at a much lower cost than can be achieved from foreign countries. Adam Smith, The Wealth of Nations, asked if it was a reasonable law to prohibit the importation of all foreign wines in order to encourage the making of claret and burgundy in Scotland.
The question is commonly held.
Will we still do all our shopping online once the epidemic is over?
The US Census found that e- commerce grew as much as it had in the past four years. Digital sales have increased in Asia, where online shopping was already more prevalent. Experts believe that more online shopping is just part of the new normal, even though growth will inevitably moderate. Consumers are creatures of habit, and Covid-19 has made big changes to those habits. Shoppers who have never before purchased items online are now doing so. Some of the behavior is likely to stick.
Person of interest.
The image is copyrighted by Christian Hartmann.
The CEO of the world's largest luxury group, Bernard Arnault, is fed up with people who treat themselves to a Louis Vuitton bag, a bottle of Hennessy, Dior shoes, or a Tag Heuer watch. Arnault has 75 brands with sales of more than $60 billion in 2019. He was known as the "wolf in Cashmere" because of his ruthless business maneuvers, which led to a lucrative shift in luxury that made it accessible to the global middle classes. He is one of the wealthiest men in the world, and may soon have another jewel in his crown if the purchase of Tiffany is completed.
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It's a fun fact.
The image is copyrighted by Christian Hartmann.
Would you buy a handbag? If it was a Birkin, it would retail for as much as $200,000.
Birkins are a robust secondary market and they appreciate in value quickly. According to one analysis, the value of the bags increased by more than any other collectibles.
Do it yourself.
We are buying more, spending less, and wearing items for shorter periods before throwing them away. Buying more of your fashion used is one way to slow the amount of used clothing that ends up in the landfill. It has never been easier because of the internet. The past decade has seen a flourishing of secondhand retailers, from online marketplaces to luxury resale sites that have drawn big brands like Gucci to participate.
