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    Supply chain problems create access issue for Thanksgiving – Boston University News Service – Boston, Massachusetts

    Boston, Massachusetts 2021-11-22 14:07:43 –

    Gladys Vargas, Megan Gregoire, Daniel Multz, Hania Malhas, Katrina Liu
    Boston University News Service

    Next Thursday, millions of Americans will meet with their families to celebrate Thanksgiving. Food plates crowd kitchen tables across the country. However, in some cases, shortages in the national supply chain have forced families to face empty grocery store shelves and rising food prices.

    Low employment in Agriculture, NS Shortage of truck drivers due to unsustainable working conditions When Global shipping delays It’s just one of the obstacles that slows down the industry.

    Year-on-year increase in sales prices of national producers in September:

    “The term domino effect is very important here because it can clog or stop links in the supply chain,” said Toby Gooley, a former editor of the supply chain quarterly. “It will be much more effective.”

    The COVID-19 pandemic has disrupted supply chains around the world.according to US Bureau of Labor Statistics, The Consumer Price Index (CPI) in October 2021 rose to 6.2. This means that food prices rose 6.2% from October 2020 to October 2021, indicating inflation.

    Year-on-year change in monthly Northeastern CPI for 2021 (2020-2021).

    “Inflation isn’t causing supply chain problems, which reflects supply chain problems,” said Robert Triest, head of economics at Northeastern University and former economist at the Federal Reserve Bank in Boston. increase. “The lack of some products and services puts upward pressure on those products and services.”

    on average, Turkeys between £ 8 and £ 16 cost about 25 cents This year is more than last year. Staple Thanksgiving products such as turkey, cranberries, liquid gravy, and refrigerated pies will soon be out of stock.

    Catherine Lin, senior director of communications and public relations at the Greater Boston Food Bank, said banks are experiencing inflation directly as the holidays approach.

    “For example, in the case of turkeys, turkeys have increased by more than 10% compared to last year. Other items such as squash have increased by 17% and sweet potatoes have increased by 28%, so these staple items You can see some going through the roof, “Lin said.

    Year-over-year increase in prices at Greater Boston Food Bank:

    It has also proven difficult to meet the needs of those who cannot tolerate rising food costs. Food pantry finds it difficult to stock their inventory before the holiday season.

    “Over the last two years, thanks to COVID, needs have increased by about 60%,” Lin said of the city’s existing non-holiday-related needs.

    “We have realized that more and more people are in need of themselves because of the economic and financial difficulties that COVID and the pandemic have brought,” Lin said. “That need hasn’t really diminished so much.”

    Year-on-year increase in national food prices in September:

    Widespread delays in delivery further slow down the distribution process of goods and services, primarily affecting national food shortages.

    “All the nodes in the supply chain are full, so everything related to the transportation, storage and distribution of goods has almost stopped,” says Gooley. “The warehouse is full. We are having a hard time delivering because we don’t have enough space to keep inventory. That is, a container full of imported goods in the dock. [are] It doesn’t move as fast as usual. “

    Kate Ashley, an associate professor of supply chain and information management at Northeastern University, also shared concerns about the impact of truck labor on the process.

    “Recently, there have been reports of a major retirement of truck drivers. Therefore, when goods arrive in the United States, to deliver the goods from the port to the end customer, the container is unloaded at the port and most often loaded onto the truck. , It requires different kinds of work, such as delivering it to the final destination, “Ashley said. “Doing something in terms of logistics is more expensive.”

    “Yes, we’ve seen delays in delivery and increased costs for a variety of products,” added Lin. “To understand that, we saw an average rise. [of price] Between 10% and 20% for a variety of foods. “

    Greater Boston Food Bank has a full-time food purchasing team that can establish partnerships with food retailers. Lin said this would set him apart from other food banks and provide ample food.

    “This is a bit of a mess, making sure you have enough food in stock at all times, but you’ve diversified your portfolio enough to have enough food. It’s just everyday logistics. That food. It’s pretty chaotic to get it, “Lin added.

    Ashley had similar concerns about access to food.

    “For many consumers, being able to pay a little more for the products you’re used to buying may not be a big deal,” Ashley said. “In a resource-poor community, the price differences we see can be unfortunate for a resource-rich community, but they can be truly devastating.”

    Gooley speculates that prices could remain high after vacations due to the slow process of repairing fractures in the supply chain. During October Biden Harris administration announces launch of supply chain dashboard This will begin to track the progress of the deployment of unprocessed imports.

    “Seriousness and its spread … it actually affects almost every aspect of the US economy, so the White House is so deeply involved in helping private companies solve this problem.” Said.

    Graphic: October year-on-year increase in CPI by BLS (Labor Statistics Bureau) Area:

    This global problem will not go away overnight and it will take some time for the economy to stabilize.

    “Everything I see and all the experts I’m talking about don’t think it’s going to be settled at best a year from now, and could even enter 2023,” Gooley said. Said. “Consumers need to be prepared for these prices to stay high.”

    Supply chain problems create access issue for Thanksgiving – Boston University News Service Source link Supply chain problems create access issue for Thanksgiving – Boston University News Service

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