A Timeline of Supply Shortages

Throughout recent months, we have faced numerous shortages attributed to various factors, including:

• Reduced Supply: Due to lockdowns prompted by the pandemic 🦠
• Increased Demand: Resulting from shifts in consumer behavior 📈
• Cybersecurity Issues: Such as hacking incidents 👨‍💻
• Supply Chain Disruptions: Compounded by logistical challenges 🌎
• Natural Disasters: Impacting production 🔥

Here are some notable instances of shortages:

• February 2020: Masks 📈
• March 2020: Toilet Paper 📈 (alongside temporary shortages of rice, noodles, and flour in Germany 📈, and condoms 🦠)
• July 2020: Aluminum cans 📈, Food in Yemen 🦠🔥, Shipping containers 🌎
• August 2020: Lumber in the US 🦠
• December 2020: Computer chips 📈
• May 2021: Gas in the US 👨‍💻
• June 2021: Food shortages in North Korea 🦠🔥
• September 2021: Gas and food shortages in the UK 🌎
• November 2021: Wine and liquor shortages in the US 🌎

The pandemic triggered a series of "Stop-and-Go" disruptions. As governments imposed lockdowns, the initial panic led many to stockpile essential items like toilet paper. Typically, the demand for toilet paper remains steady, but the lockdown altered consumption patterns. For instance, people began using more toilet paper at home rather than at work, influencing purchasing behavior.

As lockdowns encouraged home improvement projects, many individuals began renovations, leading to increased demand for home goods. This shift likely resulted in a temporary dip followed by a surge in demand for larger items such as furniture and appliances.

Section 1.1: Supply Chain Constraints

The pandemic imposed significant constraints on supply chains. Production slowed during lockdowns, and when operations resumed, demand had surged. Manufacturers faced challenges in scaling up production, as increasing supply requires additional resources and time—akin to a traffic jam where the resolution takes longer than expected.

Global Shipping Challenges

The interconnected nature of the global economy means that many products originate from countries like China. The logistics of shipping involve several stages—from container packing to shipping across oceans, offloading, and distribution.

In late 2021, a severe backlog at US ports highlighted the problems within this system. Numerous container ships were stranded at ports like Long Beach and Los Angeles due to:

• Increased demand for goods during the pandemic
• Illness among port workers affecting operations
• Shortages of truck chassis and drivers

This confluence of issues left containers stranded, exacerbating supply shortages.

The video titled "Why There are Now So Many Shortages (It's Not COVID)" provides a detailed overview of the various factors contributing to supply shortages, emphasizing that the pandemic is just one piece of a larger puzzle.

Labor Shortages and Their Impact

The phenomenon known as "The Great Resignation" saw many workers leaving their jobs, particularly in the US, during early 2021. This trend stemmed from multiple factors, including health concerns and a reevaluation of work-life balance during the pandemic.

The Suez Canal obstruction in March 2021, when the Ever Given grounded and blocked trade routes for six days, further strained global supply chains.

Brexit also played a role, as the UK's exit from the EU led to a mass exodus of workers, causing shortages in industries like trucking.

Section 1.2: The Semiconductor Crisis

The COVID-19 pandemic amplified demand for semiconductors, which are crucial for various technologies. Sales surged by 24% from October 2020 to October 2021, as remote work necessitated more laptops and PCs. Increased usage of online services further fueled this demand, placing immense pressure on chip manufacturers.