Covid-19 Impact On Supply Chain

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Southwest Airline canceled over 2,000 flights this past weekend. And the cancellation is continuing.

It was not because a strike due to pilots called in sick as rumor had it, but a genuine lack of staff resulted from the pandemic to meet the demand of travelers. Southwest isn’t the only one. American, Spirit and even the Transportation Security Administration are facing similar problems. Imaging what will happen during the holiday travel seasons.

What happened in the airport is also manifesting in other modes of transportation. Ships are backlogged at anchors due to “terminal yards, overflowing warehouses, rail yards, and truckers are all maxed out.” Our supply chain is coming to a grinding halt, and the impact is felt at the stores where consumers are facing empty store shelves.

If you feel the panic setting in, there is no need to rush to the store and stock up on toilet paper or other essentials.  The US supply system is not broken, juts backed up.  Until the supply and demand catch up with each other, one may have to pay more than usual for certain merchandises.

When will that balance be restored? Your guess is as good as mine. Given the pandemic is on-going, this holiday season will be for sure a tough sale. 

Was Amazon smart to have its Prime Day sale early in June this year?

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