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tv   Boom Bust  RT  November 27, 2021 1:30am-2:00am EST

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good airs. sinks ah, we dare to ask a tooth or doesn't whom also one business show you cannot afford to mit? i'm been swan ambridge bar in washington. here we have coming up for the holidays are just around the corner and the supply chain situation isn't looking great, which might, 4th, consumers to change holiday shopping habits. we'll talk about what we can expect this coming season. and then thinking of supply chain constraints, coupled with inflation in the economy, struggling to recover from the pandemic. how does the highly lucrative holiday retail season look? we'll discuss with our panel to the pac show today. so let's get to it. and we
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leave the program with something that we have heard so much about recently strained global supply chain so contributed to rising prices. they've also made it very difficult to get products as we head into the crucial holiday shopping season. retailers and consumers like our feeling the impact, whether it be good stuck at ports are sitting in warehouse is waiting to be delivered. analysts predict supply chain disruptions will be here beyond the holiday shopping season, leaving shoppers with numerous out of stock messages. well, in to 2002002. joining us now discussed the latest in the supply chain crisis is kevin jackson. he's the host of digital transformers on supply chain. now, that you so much for joining us cabinet now. we have heard a lot about of different reasons for the supply chain issues. what are the reasons you are seeing or her role? thank you for having the younger show, but as a whole, the industry has not responded efficiently to technology trends. this includes
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a failure to expand their motor channel in honor channel customer support capabilities. supply chain channel kiners really need to have visibility into their entire supply chain situation to ensure your session to your production programs for on time delivery and enhance, customer satisfaction yeah, so kevin, you know, we're talking about the supply chain issues. they really kicked off in the beginning of, of early october, right. but, but let's go back even before that, because really into the summer we started to see this pile up of shipping containers really off of 2 ports to support along beach, in the port of off angeles. right. and these ports obviously have been clogged up now for months. we have and i'm getting some numbers here just in the most recent numbers. 84 shipping containers that are now sitting in the water waiting to get into port, which by the way is now a new hi. so it's not like that's gotten better. 65000 shipping containers are in
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port but are empty and they can't get back out. so what we see is this continued struggle right now in terms of, of how much of this this funnel has been clogged up. and it doesn't seem to be getting better, even though there's a, there's a, a white house task force. it's been assigned to this. even though the rules surrounding the time that these ports are open has changed. why is it taking so long to get this particular situation? in long beach and los angeles, why is it taking so long to fix this was really inadequate planning and forecasting and or dependency on using what's happened in the past to predict what's happening today. that sort of looking in the past is not helpful because the president has changed the before the tomorrow at spec,
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a normal consumer but consume returns to nothing but normal. there's also been huge. shares in government been or regulations that have been driven by changes the panoramic protocols due to local law searches and rapidly changing travel restrictions. and this have in turn, caused huge fluctuations in transport cost. shipping container costs, for instance, have exploded, followed 10800 percent. and also there are container and yard management factors like port congestion that you just talked about. and labor shortage for truck and rail transport is really ship the industry hard. and i'm going to kinda propose a question that has been here because, you know, we've talked about this issue at great length on this show and sometimes best bet
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and peers as an analyst. so i've just got to set that up for you here. but then you've often contended that this is number one is a less of a global supply chain. it's more of a us supply chain issue. and there's one thing that you've kind of pointed out many times to solve this problem. we could get them off of the west coast ports and move them in to say the gulf of mexico and florida. how do you see that working? yeah, well there's, there's a couple of things i think are fairly interesting here. one is a 40 percent of all shipping containers to enter the united states come through these 2 ports as we mentioned before, port los angeles and the port of long beach. so that's obviously just a problem in and of itself to have so much of these cargo containers coming through such a small geographical area. but here's the thing we, i just mentioned, 84 container ships are now sitting in the water off of the coast, waiting to get into port. now, the question that i posed before is why not re route many of those container ships to other locations, send them to florida, send them to the gulf of mexico. why not move them to other ports where,
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where it would make sense to get them in. i've actually checked how long this would take. it takes 2 weeks, essentially from los angeles. you go down to the panama canal, come back up on the other side. and now you've got florida, and you've got the, the gulf of mexico. and i guess kevin, let me then take that brings question and i'll toss it to you. so i've been saying this for weeks now. why doesn't this happen? it makes perfect sense to me that it would happen. why are the ships continuing to wait? because some have been waiting for months and it with 84 container ship sitting there right now we're talking about what another 6 months worth of unloading to take place. why not move them to florida? why not move them to new orleans? why not move them to, to the gulf coast and get them into port so they can start to be distributed around the country. works morning jackson, getting a ship to a poor, poor. have to be prepared to ship that. sure. that's called infrastructure. you need to be able to off load the containers,
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you need to have enough people to offload containers. you have to have a war that's actually larger. now some of the container ships can only go into specially designed port and also somebody's ships have huge drafts. so if you look at the amount of water and ship needs in order to just get into to afford, it may not be available. so there's a lot more in just moving to another port. so let me ask you this real quick. so is there any reason to believe that these there are no other ports that can do this, and the only reason i'm asking is i know the florida governor rhonda santos has made several statements where he says, look, florida, the ports are open. we can handle this, we have the ability to we have the crew and the staffing. remember when, when president might have mentioned that the board of los angeles and the for the long beach, were going to be open 24 hours a day. and they were going to be staff differently than they have been in the past
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7 days a week. descent it says in florida, that's already the case. all of their ports are already open 24 hours a day, 7 days a week. so i'm just curious. do you know that, that these ports couldn't handle this? so i don't know if reports credit, but each of the companies themselves may have internal searches. and remember, the company has not been, have not been prepared to actually transition to different port. that is a issue there should be much better of advanced planning. and there's also been a big shift with respect to off shoring. so this, this issue is really driving a lot of changes and decisions with respect to the so often of these products. the
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other thing is that many organizations only have single suppliers, as opposed to having multiple suppliers and the needed products from multiple locations. both are shorn and mir shoring needs to be addressed. and i want to go ahead and bring in another guest here, britain, lad, global strategy and supply chain consult. he's joining us now as well. britain, we're talking about the solution to all of the world's problems when it comes to global supply chain. and whether or not we can move some of these container ships that are basically parked off of the port of los angeles and part of long beach, can't we move them somewhere else, whether that be to the coast or even north, what is your make? what do you make this? certainly now i agree with what our guests have been saying that it's, it's a challenge to do that. he's ry some of the ships out to, to shallow draft. ah, there's also the fact that some of the ships are too large,
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the pole in the sports. but the big thing is this. i have spoken with the bi demonstration, i've spoken with the press about this. and the things that i recommended to them is that they need to fix the problem where the problem exists and that is the west coast. and what i've argued is that there is no reason why the u. s. military cannot be asked to be involved in this to where they provide the trucks, the trailers, the drivers, and that special permission be given to a lot of the drivers currently serving in the military to be able to drive these trucks without the appropriate chauffeur's driver's license that many of the civilian drivers have, and i'm not talking about putting them on their states or anything like that. but be able to have them work at the port be able to have them help in getting these containers unloaded dredging these these for these containers to local travel facilities and things like that. because what i've argued to the vitamin ministration is that this truly is a crisis. this is not a problem, it is
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a crisis. and those military absolutely should be able to assess and take care of this. and the other thing that i want to distress, and i've stressed as to the binding ministration, is that the other ports are now starting to get a tremendous backlog. they to are starting to fill up. the last thing we want as a country is a port system that is unable to be able to to be unable to unload ships, unload the containers. this should have been already fixed. and so my advice to the vitamin ministration remains, getting u. s. military involved in us, and let's set a goal of having those ships on loaded within a matter of a month or 2, not 6 months or anything like that. this really is a much bigger prices. and people realize when you talk about getting the u. s. military involve us, be clear, that's a, that's a different proposal than the proposal that's been made about getting the national guard involved. obviously with national guard comes in many of those, you know, guys would, and men and women would already. busy be truck drivers in their civilian life,
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and then they, they also work in the national guard. you're talking about active duty military to be able to transport goods and to be able to move the empty shipping containers correct. direct. now they certainly would be supported by the national guard, but here's the problem. i've done an evaluation of the available guard units, and there simply is not enough civilian truck drivers that are within the guard units. and so we're actually looking at a smaller number of people who could be as a, could assist with this. but also when i'm talking about the u. s. military, i'm talking about giving this problem the attention it deserves. this is not something i believe is really best set up for the guard to handle. this is something where i say president biden should have an executive order work with the department of defense, the secretary to fans, and say last allocate the necessary men women and equipment to get those containers unloaded off those ships, get those containers out of the ports, the big problem,
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no one's talking about is there several 100000 containers sitting right there in the ports to day. so they're actually running out of room to bring off containers input into the board. so we've got to clean that backlog out and being able to leverage military equipment to do this and allow these trucks to operate on the roads, which they're normally not allowed to do except in times of national defense and, and war. so i say give them the authority they need to do that. this is really a great opportunity from a bite and ministration to do something good and have the military helped them and say, we're cleaning this up or cleaning the other ports up. we're going to do in a way that's a little extreme, the, some people, but i've analyzed that this is what i do for living. i run models and i, i basically do a research on these topics. i served in the marines for 6 years. so i've been involved in these types of operations before, and to me, this is not best suited for the national guard and reserve. this really should be active duty military and one other thing. in addition to the problem at the poor,
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we're also running into all kinds of shortages in the stores. and i'd argued through the vitamin ministration that we need our own version of the marshall plan . where in world war 2, we flew all kinds of products to europe. we need to leverage our military to go around the globe and be bringing a lot of the products we're running in the shortages of here now. and let's start stockpiling those. i don't think the average individual realizes just how severe this really is. and now kevin, obviously breton, came in and he threw a whole nother wrench in the works of ideas here. what do you make of that? kevin, more current international god certainly could be activated to help, sir. it will require both the governor and your national government to collaborate on that. you would also have to look at other means of
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transportation like rail to help reduce the backup at all. busy of the port, so those are shirt options that should be explored. kevin jack, then host of digital transformers that supply chain now and britain, lad, global strategy and supply chain consulting. thank you both for joining a fascinating conversation. we'll do it again soon. thank you. thank you it's, i'm not for quick break, but when we come back, so we've taken a look at the products, getting the doors will get insight into what retail sales might look like during this holiday shopping season with our expert panel, the right back with the postal service delivers a 155000000000 pieces of mail every year. approximately 40 percent of the world's mail. right now the us postal service is in the flight of its life to see everybody
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in the introduction bad financial shape. now facing default. the postal service is a cash cow, and there was a way to pull money out of the postal service to put into the federal budget. there was a mandate that you bring in a $100000.00, new revenue every month. the nature of privatization in the us postal service is very much hidden from public view. it's privatization from the inside out. that's a big business in money. it's not about the public and given them a service that they deserve. it's not about quality train workers. it's about with people is still thing the cars right on police report. it's an all cash in december
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2020. a group of anti finishes allowed a film crew access for 3 months. so like if people organization, if an idea that you must be up how is that? you can't allow the gate while they may come with their faces. but they can say what they believe in. we believe in helping our community. we believe that fascism is one of the major threats to the united states as gotten reuben, this is a chance to see who and teeth are really are in order for me, for my 1st amendment, right. and say my life matter. i have to be on to the teachers with the police me chance was the governor. we can't trust anyone except or so to protect ourselves in a a a
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a ah with ah, i welcome back now that we have officially reached the christmas season. well, i mean, here in the united states has been going on since about october, but we have reached the season officially. we have to ask the question, how different will this holiday season be from years past? thanks to supply kit, sit train constraints, as well as a pandemic recovery that is coming much slower than expected. yeah, it is a question of what is retail can actually look like?
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well, it will look like this year to shop compared to years past. and what is the new normal is, is there a new normal? joining us now to discuss this bar before professor pre k lini consumer science at the university of houston and the yamani associate professor at the darden school of business at the university of virginia. thank you. both for being here. so barbara, let's begin with you prior to everything that has happened over the past 2 years, retail was let's face. it was already struggling in comparison to e commerce. we know that brick and mortar has been struggling for a number of years now, and e commerce was rising. but how much worse has it gotten for brick and mortar as a result of what we've been through for the past 2 years? well we have, we have experienced a lot of growth in online shopping. we expect this season will be about 20 percent of total retail shop, but that means 75 percent of what is spent will be spent in physical stores. so we're expecting a strong monroe best retail season. national retail federation suggests will be up
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maybe a half, 10 and half percent over 2020. and that's signals the strong season over there. we've obviously, you know, spend, like been said about the last 18 months to 2 years kind of inside. obviously people are opening up more and more to day. but is it possible that there could be some sort of kind of online fatigue taking place and people will actually want to get outside and shop this or do we see any of that or are, are there really stuck in their phones and computers? yes, you would see some of it, but not so much probably because of being stuck on your one computers. but probably because when you're making a purchase for $50.00 and it does not show up on the day that you want it like somebody's birthday anniversary of party christmas, then people are going to start getting ready, novas. so you're going to see some sections off populations. ready going backing to
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the stores, just to get that certainty that you're going to be able to find this particular item. it's going to come with us. cool. that's a check box that's checked off from the nist. the other please that you might see something like this is let's see, i am going to pick up indoor decorating lunch. i want to see how that space looks right online is not exactly great. so something like that. and that interaction that advice is something people would want, but everything else from detergents. ready to toilet paper to her these, i don't sequencing was going from the unlikely simply because it's just too simple, too easy. you've gotten to used it well, and i definitely understand your point, but it also seems with the can the supply chain constraints that we've been talking about. there's such a little of a guarantee that that item will actually be in the store at this point as well. so that's, that's where things are becoming more and more difficult these days. now,
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barbara, all these notes, how much is inflation and rising costs of pretty much everything impacting this going into effect due to those retail numbers? well, we'll see some differences in prices, a little bit higher price for the product itself, little higher price for the for the transportation to get it to the consumer. and then of course the labor said shortage. the tight labor market is also playing in substantially. ah, so we may see some higher prices, but retailers are really trying very hard to keep, re tell prices in line with what consumers are happy to be pay regardless of the holidays aside for a minute here as, as we will soon move into 2022 which is kind of unbelievable that we're there already. it appears as inflation, though, is not transitory. we kept hearing that right in flesh as transitory is not gonna stick around. it looks like it's gonna stick around and maybe even for years to come, which also means the cost of everything is going to go up and it's going to stay up
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. now we've heard people say, well, it doesn't really matter, right? because people have more money in their bank accounts and so they can afford it. number one, how long can they afford it? and number 2, what consumers need to consider based upon this idea that the cost of everything is not only up, but it may stay up for the foreseeable future. and that sort of nanny good for, and i think it over there prices. so we see a sticker shock on eggs on gasoline, runny. we're not being mindful about it. and i see that it means holiday season between between landscaping and christmas. that'll be illustrate. we're getting to the black that's in a lot of seats. and a bunch of the supply chain issues that the of being on the backend is gonna come to consumers on the front end, which means you're going to see prices creep up on you fi cents on eggs and cents on medic dodge and everything that we use on an everyday basis is going to be
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a pleasant age optic on it, which is going to leave less in the purse when you get into spring next year. i don't even know if was prepared for it. there is going to be stood a section of the population that is going to be okay with the hot the padding, the handle place to absorb that inflation. but when you're talking about everyday mainstream brokers, you add those swipe was a big is up including then what do you see on brent on utilities? every one plus a date. there's going to be a lot less discretionary spending happening in those actually that that's what i mean my thing and i'd be mindful about it. absolutely. and barbara armina, you know, it seems like, you know, i'm going back to the holidays here. it seems like shopping begins earlier in earlier every year. and now that we have had the supply chain constraints, we haven't seen, you know, big numbers in october as we've talked about. i mean, is that all being pushed by this? are people actually just getting out sooner and, you know, when we get into mid december, there's gonna be
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a lot of empty shelves to look at. well, the numbers tell us that 4 times as many shoppers expected to shop earlier than they usually do. and retailers, of course that's good, it extends the selling season. consumers buy early and then they also buy late. so with an advantage to both consumers and retailers, i think it'll happen a longer selling season, and simmers are to some extent ready to be out and around with people. and shopping is a tradition remedy. and so that's part of the holiday experience. but i, i do think there is a concern for some people. certainly you're not going to have necessarily that, you know, some of those big christmas items, like we have with the p s 5 last year and some of those, those bigger items. but one of the things that took place, i think it was fairly interesting, was there was such a delay for people trying to get some of those big electronic items last year because you couldn't find them and stores. and then when you went online bots were
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buying them all up. and so i, i, i heard from a lot of people that there is fatigue with the idea of trying to hurry and buy things online. because they don't want to compete with bots that give you the last word here with absolutely, i'm the panic of not having it in done makes you want to buy early. always what it odds are. doses are not very short of what exactly you might want to see on this hedge. which means that you're not going to just be buying one, you're going in with a category in mind. so you're saying i want televisions. and i might want a couple of sound by systems along with that, i'm not really sure which one little i'm going to buy. because there's a big blacking load that it's not going to be available to go, but the big tv bigger item. and i wanted it on the 2nd one. so come january about to see a big i've opened up software bill is coming up nearby. that's an invalid across the system. but, but consumers are playing safe. there anything a little back in?
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they're buying the woollen upping on line ahead of time, much more than what they need. barbara stewart professor of re 70 consumer science at the university of houston and b yamani, associate professor at darden school of business, university of virginia. thank you both. thank you. and that's it for this time you get boom. but on demand on the portable tv app available on smartphones and tablets through google play in the apple app store by searching portable tv and portable tv can also be downloaded on the smart song, smart tv or roku devices, or simply check it out at portable dot tv with ah
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sure, don't seem an official mister spiritual, someone at that. just wanted to check with them with besides allowing me to let them know that she can usually sit almost by you. so what i'm going to look up in video, it will do just one submission. i just a few moments she leeway where she shared with
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i saw a message from an unknown account as it had to sell through with my passport as its profile picture. i saw pictures of my documents, it was they also sent a credit contract. if i had just 3 days comply with their demands to see if i didn't send money and they sent up an online hate campaign that i was supposed to be very dangerous man.
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with the headlines here were naughty international, a new coping straight in south africa over is sparking global panic, prompting nations to shut down and travel with that region. a cases are already spreading, though with the latest detected in israel and the belgium the developers of sputnik v prepared a test of the russian shot against the new mutation. here were naughty in the program. we hear from the hungarian foreign minister about his own country's vaccine policy and the need to put lives above politics. there are many countries and considering the issues of vaccination as if it had a political order or ideological nature. you know, it's about liable to people. well i didn't do anything.

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