WHO is Xi ? That is the real question. It’s all over the news.
President Xi, the WHO and all this issue about PPE for COVID-19 and the face masks have become a worldwide daily conversation.
Who really knew what a Corona Virus was before this all happened?
The real issue is how to stay safe, protect your family and yet at the same time get us all back to work.
If you work remotely it’s not that bad- just keep on working.
But what about the thousands that need to work at a physical location outside their home? That’s another issue !
There’s no easy solution. It’s like walking a tight rope – be very careful.
It’s a delicate balance between economics and death (or life).
Many people ask me what’s going because they know I lived in China, Taiwan and have traveled extensively in Asia.
I know they’re curious but I don’t have a crystal ball into WHO, what, where, when and why and how.
The answer – we now have a big supply and demand problem. It’s basic Economics 101. It didn’t happen overnight either.
We also didn’t have a pandemic to open our eyes – at least in the last hundred years. Basically, the Freight is tied up in a knot.
There’s a big shortage on the airline freight capacity, face masks and a decline in ocean container ship available due to the pandemic.
Ships don’t like to travel nearly empty from Asia to America
This is what happens when you have supply chain and not relationship chain. Oh- Don’t put all your eggs in one basket.
Now that the supply chain or Ball n’ Chain is broken many of the “small buyers” are getting thrown under the bus.
Only the big guys are seemingly getting the preferential treatment.
If you don’t believe me just take a look at the price of freight and cargo coming out of Asia back to the states.
Take a look at what they’re selling face masks now. Compare that price to what they were in late 2019.
We’ve know because we have been shipping PPE all around the globe. Many asked us if we can supply these products.
The short answer is yes. The long answer is yes wholesale.
So, why then is the Air Freight and cargo so expensive and difficult to obtain out of Asia people ask?
The answer is that container ships are not going to sail nearly empty. They’re not full as the demand has dropped.
Ships hold much more capacity and weight than airplanes.
So, if the ships don’t sail (full) then you have an overload for the airplanes to handle the AIR freight volume. See my past article Ship Happens.
We know that planes can only carry so much weight. They are limited with large oversized objects. Plus, there’s an 8 day delay for Air from Asia.
If you cannot stack cargo on top of these oversized items it’s wasted space. Remember trying and moving with a small van? Can’t stack everything.
On the other hand, ships can fit just about anything and can transport a lot more weight. Planes can’t but they’re faster right?
What used to be $250,000 to rent a chartered flight is now over $1.2 million (and they’re all booked until September 2020)
Wanna buy a cargo plane?
It started when the factories, schools, shopping malls, restaurants and construction sites closed. Remember the game Dominos?
Then the production and services to the public diminished resulting in near empty container ships headed our way. Less traffic, less room.
Traffic reduces obviously if you’ve been on the roads. The Brooklyn Queens (BQE) is a good example.
The BQE travel times are almost all 20 minutes – for the 8 mile stretch at anytime of the day.
That’s a 68% decline at 5 PM rush-hour.
Imagine this – a trucking company would save more than 6.5 hours per day per truck.
Before the pandemic the ranges were as high as an hour depending on the hour of day. Ask any New Yorker !
Personal vehicle miles traveled known as VMT has dropped a National average of 46% while Freight moving in trucks dropped only 13%.
The hardest hit VMT states are New England, Florida, Texas and California to name a few.
Lesson learned? I think the greatest lesson learned here is to always have a Plan B.
That lesson is to protect your family and have enough food and water. Money too…
Maintain the basic four walls around you, a roof, protection and good friends and neighbors nearby!
Don’t get caught in the Freight Knot – or better still… Fret Not and Be Still !
DGL Logistics, LLC
Toll Free: 833-222-1923