Supply Chain Backlog

Summary

This Northwest Seaport Alliance slide presentation, 'Supply Chain Backlog', dated 11/15/2021, opens with background figures including 20,100 direct jobs and 23,600 other jobs supported by household spending. Its 'Anatomy of a global supply chain crisis' slide traces the pandemic's effects: U.S. consumer spending dropped 30 percent in April 2020, factory shutdowns in Asia disrupted the global supply of shipping containers, and the Spring 2020 shutdown left 25 million containers in the wrong place. It reports a 40% container imbalance in North America, 100,000 trucking jobs lost in 2020 in an industry that moves 71% of U.S. freight, and air freight volume up 50% over 2019, with airlines able to meet only 80% of demand. Later slides are headed 'Puget Sound- what does it look like here?' and 'How can you help?'.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Text recognized from a scanned document; may contain errors.

»

THE NORTHWEST
EAPORT ALLIANCE

Gateway to Solutions

SUPPLY CHAIN BACKLOG
NWSA: Background

23,600

OTHER JOBS
SUPPORTED BY
HOUSEHOLD
SPENDING

20,100

DIRECT JOBS

$5 859B DIRECT BUSINESS REVENUE

14,700 INDIRECT REVENUE /

SUPPLIER JOBS $2.85/B BUSINESS SUPPLIERS

$3.6/0B ADDITIONAL HOUSEHOLD SPENDING

2017, IN BILLIONS

THE NORTHWEST 11/15/2021

SEAPORT ALLIANCE
ion-

O
©)
O
O

©)
O
=

=
O

LL

Supply cha

11/15/2021

THE NORTHWEST
SEAPORT ALLIANCE
Anatomy of aglobal supply chain crisis

Spending
Extremes

* In response to the pandemic,
US. consumer spending drops
30 percent in April 2020, then
rebounds sharply later in the
year -Shocking a supply chain
that had throttled back as
economies fell into recession.

e When consumers start buying
again, spending shifts
dramatically from travel and
entertainment to clothing,
computers and household
goods. Shipping demand
skyrockets.

Manufacturing

Whiplash

¢ As the pandemic spreads
through Asia, factories close
in places like China, Korea,
Taiwan and Singapore that
produce goods for U.S.
consumption.

* Factory shutdowns and travel
lockdowns halt shipping and
disrupt the global supply of
shipping containers that will
be needed for a late-2020
recovery.

e When orders surge for
medical equipment and PPE,
Chinese factories unexpected-
ly come back online. The
supply chain is unprepared.

orm

Shipping
Volatility

* Pre-pandemic, seagoing
carriers cut capacity as the
industry consolidated and
reacted to new tarriffs and a
global recession.

* As economies suffer in 2020,
carriers idle even more
vessels and cancel additional
routes.

e When demand surges, ships
aren't positioned to respond.

¢ Demand for import cargo to
the US. is so high, some
shippers refuse to fill empty
containers with U.S. exports
before returning to Asia.

KD

t

&

Port Worker
Shortage

* Quarantines and illness keep
thousands of port workers off
the docks in 2020.

« At one gateway port, 1800
port workers are (temporarily)
sidelined due to COVID-19
protocols.

* The industry's urgent call to
prioritize port workers for
COVID testing and vaccination
goes unanswered.

Container
Scarcity

* The pandemic shutdown in
Spring 2020 leaves 25 million
containers in the wrong place
to meet resurgent demand
later in the year.

e Container manufacturers
- predicting a yearlong drop in
demand - slash production.

« North America faces a 40%
container imbalance - for 100
containers that arrive, only 40
are exported.

* Ashortage of container chassis
for semi trucks, caused by 2019
tariffs and aging equipment,
compounds the problem.

Trucking
Shifts Gears

e When the pandemic hits,
several large trucking
companies go bankrupt,
disrupting an industry that
moves 71% of US. freight.

* 100,000 trucking jobs are lost
in 2020.

e Remaining truckers are
transferred from retail to
priority industries such as
food/beverage and cleaning
supplies.

* Quarantines in China also lead
to driver shortages that trap
consumer products with their
overseas manufacturers.

Fewer Flights
for Freight

e Shippers typically use empty
cargo space on passenger
flights - space that disappears
when air travel all but ceases
during the pandemic.

e Air freight volume rises 50%
over 2019. Airlines fly at peak
freight capacity - some even
re-open dormant overseas
passenger routes just to carry
cargo - but the industry can
only meet 80% of demand.

THE NORTHWEST
SEAPORT ALLIANCE

11/15/2021
Puget Sound- what does it look like
here?

i

$

THE NORTHWEST 11/15/2021
SEAPORT ALLIANCE
oteps we are taking

THE NORTHWEST 11/15/2021
SEAPORT ALLIANCE
How can you help?

THE NORTHWEST 11/15/2021
SEAPORT ALLIANCE


File and source

File

2021-11-16_a29281_d236514_dick-marzano-northwest-seaport-alliance-supply-chain-backlog.pdf

Size

1,829,279 bytes

SHA-256

9b420d6bf1663ab079f2cbb520d40b3b1fb8402d3aef9c7458be77d89671a483

Our copy

2021-11-16_a29281_d236514_dick-marzano-northwest-seaport-alliance-supply-chain-backlog.pdf

Original

app.leg.wa.gov