Fears Of Rising Food Prices, Freight Rate Spike & Extensive Shortages Trigger Panic On Supply Chains

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Brace for more shortages, shipping disruptions, and painful price hikes as global tensions continue to escalate and wreak havoc on supply chains. This week’s events have sparked unforeseen chaos on global trade and already led to major interruptions in the flow of goods across the world. As the conflict continues to accelerate, industry experts are warning for catastrophic damages in the shipping industry, as well as soaring oil prices and a worldwide shortage of commodities and raw materials
In the past few days, several international companies already started a mass shutdown of factories, adding further strains to fragile global supply chains. The situation is threatening to cause extended delivery delays and exacerbate shortages all around the globe. The impact of the crisis on transportation is going to trigger shockwaves in every link of the global supply chain, but it won’t be the only ominous ramification. From grains to barley, and copper to nickel, every sector of the global industry will suffer as the confrontation takes a turn for the worse. 
Of course, it’s not just the European Union that will be hit — many nations around the world, including the U.S., rely on exports, and interruptions to the shipment of goods can affect food security in many regions. “Rising food prices would only be exacerbated with additional price shocks, especially if core agricultural areas are seized by loyalists,” warned Per Hong, senior partner at consulting firm Kearney.
Together, both countries account for almost 29 percent of the global wheat export market. The countries in conflict are also major supplies of metals and other commodities. Right now, one major concern for the U.S. industry is the rising price of crude oil and oil derivatives spurred by the worsening tensions. Oil prices soared to over $100 per barrel this week, and the effects of the rise are already apparent. 
Shipping companies have announced another round of price hikes in the coming days and weeks. Last month alone, the price of maritime fuel used to power ships had surged by 23% due to ongoing upward pressure on global crude prices, Bloomberg reported.
Meanwhile, truckers are warning that they will become more selective” in the jobs they pick amid fuel price uncertainty. One truck company owner told The Loadstar: “The sustained high price of road fuel has already started to affect which jobs we will and won’t do. Crude prices have hit their highest in several years, and this is a pricing situation that cannot go on deteriorating. But it looks likely that this will only be getting worse with news of the Ukraine fiasco.”
On a consumer level, the Americans were definitely amongst the first in the world to feel the impacts of the price distortions caused by the crisis. Overnight gas prices have shot up. At the beginning of the week, national gas prices were averaging $3.56 per gallon, by the end of Thursday prices were already up by $0.10 per gallon, closing at $3.66. 
The relentless rise in gas and energy prices is already making the cost of everything reach extraordinary levels, and inflationary pressures will remain a headache for consumers and businesses.  The CEO of Allegion said he sees an “iceberg” of inflation that will soon start to move through the economy, and noted that what we experienced so far is nothing compared to the turbulence that’s coming. He highlighted that as fuel costs rise, labor market shortages will become more acute, and businesses will struggle to hire truckers to deliver their goods across the country. 
“You’re going to really start to see an impact on people’s buying power and you just worry about the long-term business impact on how that might start to play out,” he added. With inflation, supply chain issues, and now the impact of sanctions, many Americans are concerned about what the future may hold.
It seems that this modern-day nightmare is far from over. The simultaneous emergence of global conflicts, health and hunger crises, natural disasters, and a financial meltdown will definitely change the world as we know it. Now more than ever, we should start watching global events very closely because things could change in a snap of fingers, sinking the entire world into unprecedented chaos.

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23 Comments

  1. "The best time to plant a tree was 20 years ago and the next best time is now" I consider this to be best motivational quote I've heard in a very long time. But motivational quotes are useless if you don't practice what you preach*

  2. I assume the biggest danger will come from folks from the cities that will start roaming the country side and be killed if they try to steal as most people living in rural areas are well armed and trained too.

  3. What they call fertilizer is not actually good for the plants. It is poison. I am glad they cannot make it. People need to grow their own food. Yes, it is possible, if you stop eating crap and garbage, and make the switch to eating real food. Most Americans have not eaten real food their entire lives!

    This is what happens when you become too interdependent. The Bronze Age collapsed because what is happening now to us happened to them. You are all watching the fall of the Bronze Age.

    If you do not know about the Bronze Age, and its odd fall, that is because, like me, you were not educated in public schools. We went to them, but public schools do not educate; they only indoctrinate.

    I hope this civilization crumbles to bits. I have already moved on into rebuild mode! I have already written you all off, completely!

  4. Stop the fear mongering!! This is ridiculous now! It's causing so much trouble for American people who have enough to deal with every day already. All for a few bucks made off YouTube

  5. I wish ppl would stop saying we're all evil. No we're not – we're just like any animal seeking to survive. Unfortunately, we must expect that others haven't heeded warnings, as ppl are too comfortable, & a couple generations away from experiencing true hardship & hunger. This debacle now, however, could not be worse, & it was clearly intended. This is not all incompetence; rather, it's an attack, & we're looking at the end result, & not how to prevent it in the absence of the govt. The National Guard s/b called to operate our ports & unload cargo. Or, perhaps a Christian billionaire could intervene, & hire avg Americans to work these ports. Otherwise, good ppl will be forced to do very bad things….

  6. Why tf hasn't the govt sent the Nat'l Guard to unload these cargo ships? This is deliberate, & a part of reducing the global population, which is truly evil.

  7. It was so bad the last few weeks , Food prices are already soaring ! Now with this Russia conflict raging , It is just another thing that is going to make it worse , wait till the cyber attacks hit the USA.

  8. I kinda feel sorry for people in the San Francisco area.

    Bet they think all that shoplifting is great

    I'm hearing stories of people with garbage bags shoplifting

    I'm ALSO hearing how grocery stores are disappearing in Oakland.

    Wait til there's no more stores to rob

    Wonder if FEMA comes to their rescue?

    Cause they're headed for one hell of a self inflicted disaster.

    First shoplifting, then home invasions.

    Then the murders.

    Wonder when the cannibalism starts?

  9. Did anyone else see this coming? Covid kills the economy so what comes next, usually war. Best way to trim the hedges and make some money! Trim the hedges meaning get rid of mouths to feed.

  10. ahh my daily dose of milder fear porn…. my own mind raced with scenarios as Putin announced his nuclear highest level thingy…. epic economist sounds like a new breath of air in the direction of de-escelation compared to my own thoughts of whats coming…

  11. O wonder they have the whole situation being set on UKraine being NATO or not. with the exports of raw materials, pipelines and ports, If they sign NATO … it would be a powerful economical-geopolitical barricade for anyone trying to mess with USA.

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