From SCF CEO Tim Jemal: “Supply chain disruptions don’t stop at the docks. As the Los Angeles Times reported, the price of fuel for cargo ships nearly doubled in L.A. over the past two months and the high prices are expected to continue for some time (“Ships at L.A.’s ports face a fuel shock that’s shaking the economy,” May 8).
Already, the Ports of Los Angeles and Long Beach are each reporting a slight downturn in traffic, leading to predictions of further increases in the prices of consumer goods as higher fuel prices ripple through the supply chain. They’ll reach warehouses, trucks, air and rail lines and all other aspects of how goods make their way from producers to consumers.
The potential impacts are particularly significant because California’s supply chain is a global logistics powerhouse. The state’s supply chain accounts for approximately 830,000 jobs and $660 billion in exports.”
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