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Flexport CEO on how to fix the US supply chain crisis

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Re: Flexport CEO on how to fix the US supply chain crisis

#141

>Leadership is the missing ingredient at this point. Political will has evaporated in the age of polling driven decisions. The Donor class sees actual leadership as dangerous to them, they still remember the betrayal of FDR and guard against it. I suspect some huge profits are being made by some while the supply chain remains effectively strangled, so why would they want it fixed? Things have been going down hill sin…

It's been longer than that, namely 1968.

Re: Flexport CEO on how to fix the US supply chain crisis

#142
post #104
post #55

Earlier quoted context omitted.

Owner-operators are actually not completely allowed in California. And trucks for the most part must be very new to comply with California emissions requirements. The "labor shortage" is in part aggravated by these regulations. >Danielle Inman, a spokesperson for the National Retail Foundation, which has lobbied for California to overturn AB 5, told PolitiFact that the state’s regulations on trucking impact the avail…

> Owner-operators are actually not completely allowed in California. And trucks for the most part must be very new to comply with California emissions requirements. The "labor shortage" is in part aggravated by these regulations. ... Both of these claims have been disputed by fact checking organizations: https://www.politifact.com/factchecks/2021/oct/19/facebook-p...

My quotes are from the very article you linked, man.

Re: Flexport CEO on how to fix the US supply chain crisis

#143
post #53

Once again zoning is the enemy of efficiency. Why did we ever agree to this?

Because "apartments bad"

>With particular reference to apartment houses, it is pointed out that the development of detached house sections is greatly retarded by the coming of apartment houses, which has sometimes resulted in destroying the entire section for private house purposes; that, in such sections, very often the apartment house is a mere parasite, constructed in order to take advantage of the open spaces and attractive surroundings created by the residential character of the district. Moreover, the coming of one apartment house is followed by others, interfering by their height and bulk with the free circulation of air and monopolizing the rays of the sun which otherwise would fall upon the smaller homes, and bringing, as their necessary accompaniments, the disturbing noises incident to increased traffic and business, and the occupation, by means of moving and parked automobiles, of larger portions of the streets, thus detracting from their safety and depriving children of the privilege of quiet and open spaces for play, enjoyed by those in more favored localities -- until, finally, the residential character of the neighborhood and its desirability as a place of detached residences are utterly destroyed. Under these circumstances, apartment houses, which in a different environment would be not only entirely unobjectionable but highly desirable, come very near to being nuisances.

https://supreme.justia.com/cases/federal/us/272/365/#tab-opi...

Re: Flexport CEO on how to fix the US supply chain crisis

#144

I still don't understand the actual root cause after reading that thread. Is it too many full or empty containers? If full is the root cause a lack of truckers? If empty then why aren't boats picking up the empty containers when they leave?

There is no 1 root cause.

There is a lack of empty containers in Asia and a glut in the US. There are all sorts of constraints in the US like how high a stack is allowed to be (presumably for safety or sightly reasons). There are too many containers in the US on chassis so there is a shortage of empty chassis available to take to ports. Distribution centers are reporting that truck drivers are dropping off trucks overnight and blocking their loading docks. There are reports that loaded cargo trains are unable to load so they are just blocking critical tracks.

The Twitter thread is from the CEO of FlexPort which is a startup trying to make ports and trust transport more efficient. He is pointing out critical paths in the port nodes of the supply chain graph, but the root causes are many and not necessarily all within his visibility.

Re: Flexport CEO on how to fix the US supply chain crisis

#145

I still don't understand the actual root cause after reading that thread. Is it too many full or empty containers? If full is the root cause a lack of truckers? If empty then why aren't boats picking up the empty containers when they leave?

There are no empties in the ports because all the spots to put containers are filled with full ones. In order to get empties back into the ports and onto ships you need to do three things. 1. Get full containers out of ports to make room for empties 2. Bring empties back to port and queue them up 3. Unload a bunch of fulls and reload a bunch of empties onto every ship that comes into port Right now there's no room to…

I’ve also heard that ships are rushing back to Asia to chase high profits after unloading at US ports before they allow empty containers on the ship.

I think we have mismatched incentives that allow something like Tragedy of the Commons.

Re: Flexport CEO on how to fix the US supply chain crisis

#146
post #20

Earlier quoted context omitted.

i am very careful. i prefer any other nations products. japan, china, almost any country in europe, lots in south america. but the US has constantly disappointed. and not only recently, but throughout the decades.

Can you name Chinese products (made in China by and for Chinese companies -- not American or European companies) that you consider to be of high quality? Same for South America. And what American products have "constantly" disappointed you?

Yujiintl's LEDs. They are not cheap (~1$/W for 97 CRI (typ) strip-suitable SMD LEDs on tape), but their color accuracy, especially with the 50-100% more-expensive triple-phosphor VTC series, is hard to match, especially for what are still "affordable" prices.

Re: Flexport CEO on how to fix the US supply chain crisis

#147

The last year and a half of pandemic aid has been a large scale experiment in universal basic income. The results seem to be somewhat expected: a labor shortage and high inflation.

Did you quit your job to get those very lucrative UBI payments? Me neither. Canada gave out a very "generous" $500 a week, which would not pay rent on anything outside of a 1B apartment in Toronto.

Why would quitting your job enable you to get UBI?

Re: Flexport CEO on how to fix the US supply chain crisis

#148
post #119

The real bottleneck is customs. The government works slow.

Do you have any sources for the first claim?

One source for this claim is that the President has declared that operations at the port should become 24 hours per day, 7 days per week.

If the original output was acceptable, he wouldn't have had to do that.

Re: Flexport CEO on how to fix the US supply chain crisis

#149
post #119

Earlier quoted context omitted.

Do you have any sources for the first claim?

One source for this claim is that the President has declared that operations at the port should become 24 hours per day, 7 days per week. If the original output was acceptable, he wouldn't have had to do that.

That “source” does not support the claim that customs is the bottleneck, it supports the claim that port operations in their totality are the bottleneck.

Re: Flexport CEO on how to fix the US supply chain crisis

#150

You could also set fees to fix the problem. Dropping off an [empty?] container at the port? Pay $1000. Loading an empty container onto your ship? Get a bonus of $900. Now you have a feedback loop that brings the empty containers back to where they are needed. It's sort of a recycling fee.

Worth considering how you change the incentives.

What truck driver will show up at a US port now that you just made their delivery $1000 less profitable?

I’ve heard one of the big asymmetries is how many full containers go Asia->US but how few containers (empty or full) are shipped US->Asia. Probably better to fine the ship company $9999 for each empty space they leave with below some median box capacity, then use those fines as bounty to return empty containers from inland US.

The other problem is ownership of containers and chassis. I’m pretty sure there’s a complicated system of ownership and transfer, so it’s not like every container will carry an identical bounty price.

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