Gene Seroka, the Executive Director of the Port of Los Angeles, appeared on Bloomberg Business News, and revealed the ongoing Trade War with China has resulted in a 33% drop in Ocean Container Ships entering his Port last week. Seroka also revealed the drop will rise to about 80% after this coming week, and AFTER THAT, Warehouses in the U.S. only have five to seven WEEKS of Inventory - then it's all GONE.
The ongoing Trade War is approaching a very clear moment, where EVERY AMERICAN is going to see it and feel it.
This Trade War, made necessary because so many foreign countries have added Tariffs and Restrictions to US goods, began on April 10 and the very real effects are just now beginning to show up through a plunge in arriving Ocean Container freight.
By the end of this next coming week, (By Saturday, May 10) alarm bells are going to start sounding because there won't be any more incoming ocean freight coming in to Los Angeles from China.
One week after that, (Saturday, May 17) no more trucked-in China ocean freight arriving in Chicago, and A plummet in China freight arriving in Houston.
One week after that, (Saturday, May 24) no more China Ocean freight arriving in New York City.
From May 24, all the Warehouses, Logistics Centers and Distribution Centers throughout the entire United States, have only five (5) to Seven (7) WEEKS of various inventory. So five weeks from May 24 is June 28. BY JUNE 28, Americans will begin to see empty spaces on store shelves. It will begin on the West Coast and rapidly move eastward.
Two weeks after that, by July 12, the warehouses, logistics centers, and Distribution centers, will ALL be empty of China freight.
Here is the video from Bloomberg Business TV, featuring Port of Los Angeles Executive Director, Gene Seroka:
MORE:
The National Retail Federation, and analysts at JP Morgan, are reporting "overall imports" are down 20% and China Imports -- that have LEFT PORT - are down 75-80% ! ! ! !
Oh, and for those of you who are in denial, who refuse to acknowledge reality until it comes up and bites you in the butt, because you don't want to believe your oh-so-cushy-lifestyle might be interrupted . . . . even if all the trade troubles halted TODAY, it would still take another 30 days before any goods manufactured in China, would even be arriving in Los Angeles. 40 days to Houston. 55 days to New York.
So . . . now that we know the music is now slowing and it absolutely, positively will STOP, what do we do about it to survive?
Step 1 - Your vehicle(s)
If you have been putting-off certain repairs to your vehicle because "I can get another couple months out of (whatever it is . . . battery, tires, brakes, shock absorbers, etc.) you'd better get that vehicle fixed RIGHT NOW, while there are still replacement parts still available. Once the shipments stop, the spare parts stop.
STEP 2 - Medicines
Almost eighty percent of Pharmaceutical medications in the US are made in, or sourced from China. If there is some medicine you have to take every day in order for you to live (like Insulin or Thyroid replacement hormone medicine, or Breathing medicines) you'd better go out and get yourself a reserve supply that can tie you over for a few months.
Pay out of pocket if you have to, but GET the medicine.
Step 3 - Your home
The top priority for a home should be its appliances and essential items like Water heater and furnace/Heat Pump, and maybe, for some folks with breathing trouble, the Air conditioning.
If any of these things need to be replaced, get them replaced while there are still some in Inventory here in the country. Once the inventory is gone, it doesn't matter how much money you have, there won't BE any to be purchased!
Have you been putting-off replacing the Microwave, Refrigerator, Freezer, Stove/oven, Dishwasher? Better not put it off any longer. Get them replaced while there are still some in Inventory here in the country. Once the inventory is gone, it doesn't matter how much money you have, there won't BE any to be purchased!
How about your bedding? Some of us have been meaning to get rid of a lumpy old mattress or broken Box Spring for along time, we just never got around to it. Get them replaced while there are still some in Inventory here in the country. Once the inventory is gone, it doesn't matter how much money you have, there won't BE any to be purchased!
Sheets, blankets, pillow cases, are pretty much ALL made in China. Once the inventory is gone, there won't BE any to buy. Bath towels, wash cloths, same thing.
Step 4 - Personal and other
CLOTHES
Still walking around with holes in socks? Underwear that's seen far better days? Ratty jeans that looked cool even though they had tears in the knees, but are really badly worn out now? Most clothing is made in China. Better get what you need while there is still some available.
SHOES
I love my sneakers; wear them everywhere. The tips of the soles are unglued and the heels are wearing-through but I still use them. Time to get new.
Shoes . . . soles or heels wearing out? Got polish and a brush? Shoes most polishes and shoe polish brush kits are mostly . . . you guessed it, Made in China.
Whether for business or social, get the footwear you need because once your size runs out, there won't be any left to buy!
TOOLS
Most of us have battery-operated tools now. Got spare batteries? They're mostly Made in China. Better get some.
Blades - When was the last time you picked up replacement blades for your "Sawzall?" Your Circular saw? Your Jig-saw? Your Hacksaw? Is your wood saw still good? Better get replacement blades while you can.
Drills - Need wood drill bits? Metal bits? Masonry bits? Better get them.
Hammers, Sledge Hammer, Screw drivers, wrenches, ratchets, sockets - get what you need while you can.
LAWN CARE
How many of us are still using a lawn mower or riding mower that we KNOW needs a tune-up and probably a carburetor or a new battery start?
How about the Weed whackers, Chain saws, Hedge trimmers? Do they run right? Need tune-up? Need new spark plug or carburetor? Do you need line for the weed Wacker or replacement chain blades for the chainsaw? Better get them.
Garden Hose / Nozzle - most Made in China. If you need new, better get them.
RAZOR BLADES
Guys - most razor blades (Schick, Gillette, etc.) are made in China. Get replacement blades, or get ready to grow a beard - and the two week ITCH that comes with it!
In Closing . . .
The above are some of the things that few if any of us ever even THINK about, until we actually need to do something and realize "Oh crap, I forgot to get this fixed."
What you see above was a list made from inside my head, as a homeowner, Husband, and father. Depending upon your lifestyle, there may be plenty more to add to the list, but at least this covers the basics.
There's an old adage "You can lead a horse to water, but you can't make him drink." I am leading you toward what I think you should pay attention to; but I can't MAKE YOU do anything.
Hopefully, though, I've made you think. Just don't take too long thinking because the shipping from China has STOPPED and now, it's only a matter of time before we start seeing and feeling the effects of that, here in the USA.
