Supply Chain Issues in the Ski Industry

[AmyPJ]

This news story just popped up
https://ksltv.com/475426/long-beach-port-sending-containers-to-utah-by-train-to-ease-congestion/

My husband has his CDL and is very tempted by the current wages paid to drivers. I am hesitant (very) because I think once things quiet down, it'll go back to being the crapola job that has horrible hours and benefits, let alone misleading pay at the very least.

 

[Ron]

Now they're thinking! I would love to have been fly on the wall over those negotiations.

 

[Uncle-A]

I don't know much about the port and I am curious about some of the California pollution rules and only being able to use newer model trucks so drivers with older models are excluded or not being available to use non union owner operators. Not sure what to believe as to what are the reasons for the back log on the west coast.

 

[Ron]

CA pollution laws went into effect many years ago and you cant register trucks that dont meet the requirements. that is a non-issue. Port drivers that load cargo containers out, are mostly owner-operators, they get paid per load and others are "company drivers". they are not port employees. Now, the long shore man's union is a different story. . Read above and a few pages back, and hit a few of the links. Its a perfect storm of record high Demand for goods, lack of labor, the piling up of containers and antiquated systems and practices. the article @AmyPJ just posted is really interesting and should help start getting some containers out of the yards. it actually makes a lot sense.

 

[Ron]

This news story just popped up
https://ksltv.com/475426/long-beach-port-sending-containers-to-utah-by-train-to-ease-congestion/

My husband has his CDL and is very tempted by the current wages paid to drivers. I am hesitant (very) because I think once things quiet down, it'll go back to being the crapola job that has horrible hours and benefits, let alone misleading pay at the very least.

ohhh, Class "A"? if he doesnt mind working 100 hours per week and running loads in/out of Montana and the Dakota's , he can make good money. Of course, its kind of the Wild West and its grueling work not to mention dangerous during the winter.

 

[AmyPJ]

ohhh, Class "A"? if he doesnt mind working 100 hours per week and running loads in/out of Montana and the Dakota's , he can make good money. Of course, its kind of the Wild West and its grueling work not to mention dangerous during the winter.

Exactly. I’m not exactly supportive of the idea.

 

[Ron]

 

[Ron]

Truck Driver salary in South Dakota

The average salary for a Truck Driver is $64,627 per year in South Dakota. Learn about salaries, benefits, salary satisfaction and where you could earn the most.

www.indeed.com

Highest paying cities for Truck Drivers in South Dakota

• Yankton, SD. 5 salaries reported. $81,461. per year.
• Rapid City, SD. 140 salaries reported. $76,074. per year.
• Watertown, SD. 18 salaries reported. $73,365. per year.
• Brookings, SD. 19 salaries reported. $71,883. per year.
• Sioux Falls, SD. 217 salaries reported. $71,828. per year.

Of course, you need to subtract your truck payments, fuel, food, lodging, tickets, repairs and coffee from that. .

 

[Uncle-A]

CA pollution laws went into effect many years ago and you cant register trucks that dont meet the requirements. that is a non-issue. Port drivers that load cargo containers out, are mostly owner-operators, they get paid per load and others are "company drivers". they are not port employees. Now, the long shore man's union is a different story. . Read above and a few pages back, and hit a few of the links. Its a perfect storm of record high Demand for goods, lack of labor, the piling up of containers and antiquated systems and practices. the article @AmyPJ just posted is really interesting and should help start getting some containers out of the yards. it actually makes a lot sense.

Thanks and yes the rule about truck engines older than 2010 has been around for a while but the AB 5 about owner operators went into effect on 1 January 2020. Anyway I don't think anything we say here is going to change anything. As they say it is above my pay grade.

 

[Ron]

the law for OO's was phased in and all had years to comply. plus any power unit purchased in the past 5 years+ is in compliance. A surcharge was imposed on most transportation tariffs and rates to help cover the cost BTW. there was also a significant improvement in fuel economy and maintenance of modern power units.

 

[Muleski]

Fascinating thread. Much to be learned and digested.

Now explain how the longshoremen's union holds as many cards as they do in these times. No need to get political {I guess pro or ant-union would be OK}. I seems to me that in these times, with these issues, they are perhaps a very significant bottleneck in the process. Are they? How so?

On the surface, I assume they only have so many union members, only "pushed" to work so many hours, and if they aren't working....is anybody else.

Someday I'll explain how my college roommate kept his business, one of the biggest contractors in New England {and his being a fourth generation owner}, non-union. Staggering vote in his favor, despite the union organizers spending a small fortune. Essentially he was already treating his employees exceptionally well, and many were earning some small ownership chunks. He's based in a pretty significant "union town."

So what IS going on in the ports of L.A. and Long Beach?

Thanks!

 

[Ron]

Now explain how the longshoremen's union holds as many cards as they do in these times. No need to get political {I guess pro or ant-union would be OK}. I seems to me that in these times, with these issues, they are perhaps a very significant bottleneck in the process. Are they? How so?

its a very old and very powerful union. money buys votes and favors like all big business's. I have a few stories to tell but not here! .

 

[James]

And we keep wanting more stuff

Volume of U.S. retail import cargo 2004-2021 based on data and forecasts from the National Retail Federation and Hackett Associates.
TEU = Twenty foot Equivalent Unit. A standard 20ft container.

Turn around shipping time has doubled

Typical transit times before the pandemic compared to September 2021, based on data from Flexport's customers. (Courtesy Flexport)

Why everything is “out of stock” right now - Marketplace

Four charts and a new series to help you understand ongoing product shortages.

www.marketplace.org

Stacking 5 high at an empty container storage yard inland.

"About a month ago, when we had containers being dropped off, we had a traffic jam about 3 miles out from here," Carrillo said. "We had police show up a few times to try and clear it up. But there's not much that can be done. This is a very narrow road, and these trucks need a lot of space to turn. And we only have one way in and one way out."

How a container storage yard fits into our global shipping crunch - Marketplace

Some containers have been sitting in storage for years. Experts say the problem has more to do with moving them to the right places than increasing the number in circulation.

www.marketplace.org

 

[MikeW Philly]

And we keep wanting more stuff

How a container storage yard fits into our global shipping crunch - Marketplace

Some containers have been sitting in storage for years. Experts say the problem has more to do with moving them to the right places than increasing the number in circulation.

www.marketplace.org

So that’s almost always been the case for America if you look back some decades. 08/09 was the crash dip. The leveling off in 18-20 is interesting though. Hand ot realized imports had slowed down that much. I do sort of wonder what the impact of some Of the tariffs were on that.

 

[Muleski]

its a very old and very powerful union. money buys votes and favors like all big business's. I have a few stories to tell but not here! .

I assumed as much, that they in effect control both ports. Thanks for confirming. In these times, in this economy, with these problems….wow.

At some point is it possible to literally avoid those ports? I’m guessing absolutely no chance, no way.

When you spend a career selling companies, doing deals, and such…..you {in this case ME} know “Jack” about this.

I find in it pretty fascinating, and pretty scary. Interesting, and thanks.

Been stockpiling a number of things……

 

[Lorenzzo]

Both the pre-pandemic transport system and the LA/Long Beach Port were pushed to capacity. Add the pandemic, spiked demand for goods, unions and regulation and here we are. Fixing things is like untying the Gordian Knot. Entrenched unions not facing non-union competition and regulatory effect just aren't malleable, particularly in the short term.

 

[James]

Wonder what it would be like if we were still doing this:

 

[AmyPJ]

Truck Driver salary in South Dakota

The average salary for a Truck Driver is $64,627 per year in South Dakota. Learn about salaries, benefits, salary satisfaction and where you could earn the most.

www.indeed.com

Highest paying cities for Truck Drivers in South Dakota

• Yankton, SD. 5 salaries reported. $81,461. per year.
• Rapid City, SD. 140 salaries reported. $76,074. per year.
• Watertown, SD. 18 salaries reported. $73,365. per year.
• Brookings, SD. 19 salaries reported. $71,883. per year.
• Sioux Falls, SD. 217 salaries reported. $71,828. per year.

Of course, you need to subtract your truck payments, fuel, food, lodging, tickets, repairs and coffee from that. .

And factor in how many hours worked...the per-hour rate is dismal.

I'm not pro or anti-union because I (as usual) see instances where they do good things and instances where they don't. But they are absolutely a factor in what is happening at the ports of LA and LB. I'm not sure what labor is filling that 24/7 void right now. All I see is a massive traffic jam that has the potential to have massive effects on the economy, and there have got to be several solutions to help relieve it. The current administration put together a task force in what, June? to explore ways to solve it. It seems the task force maybe didn't work fast enough. But was that their fault, or were there other powers behind the scenes digging in their heels? (Of course there were.)

This is a mess that has been decades in the making, as are a lot of our woes in the world. Sometimes, the hindsight looks back on what appeared to be good policy at the time and sometimes, the hindsight looks back on nefarious policy that benefited a small group that hurt the rest of us. Either way, these are some very interesting and unsettling times we are going through.

 

[cantunamunch]

I guess I'm talking about the inventory sitting in people's garages and basements etc. If someone definitely needed a road bike I've an ancient Peugeot from when I was at college, likewise a mid 90s MTB. I've not been incentivised to dig them out and sell them.

This guy is singlehandedly fixing supply chain problems. In a way that doesn't rely on external business and capitalist ventures.

Make sure you watch to the seat post fix and derailleur rebuild.

 

[Ron]

@AmyPJ you could be totally right but its not as simple as it may seem. the vast majority of containers coming into those ports are from China so with the record high number of shipments (booming economy with pent up demand), plus a huge issue with empty containers needing to get back to China and a huge lack of labor alone present a huge logistical problem. No doubt new software platforms and more efficient labor practices would help the solution could be a multi-pronged approach with a new port or an expansion as well.

And then there's this... I spoke with my former business partner about the situation and she is telling me its very complicated but there also seems to be quite a bit of profiteering going on and they are enjoying the delays...huge profit add-ons are taking place for "expedited" shipments. take a look at some of the earnings of the steamship lines......

Largest shipping lines post record profit jump in Q1 2021

The combined operating profit in the first qurter of 2021 of all reporting carriers was a staggering $16.19 billion, a new report shows.

www.offshore-energy.biz

Container lines set to make record profits worth US$150 billion in 2021 - Container News

Drewry, an independent maritime research consultancy has recently revised its projections of profits by container lines to US$150 billion for 2021.

container-news.com