Where Did All the Stuff Go?

If you’ve been to a supermarket, drugstore, or electronics shop lately, you’ve probably noticed a lot of empty shelves. Perhaps it’s been hard to find your favorite cereal. Or maybe you’ve had your eye on a certain pair of sneakers—but every time you try to buy them, they’re sold out.

If so, you’re not alone. Shortages of certain items have become increasingly common. Why? For more than a year, the Covid-19 pandemic has disrupted nearly every aspect of the global supply chain. That’s the process of manufacturing and transportation that gets products from the places where they are made—often countries in Asia—to buyers around the world. 

How did the world get into this mess, and what will it take to end the shortages? Keep reading to get answers to those questions and more.

If you have been to a supermarket, drugstore, or electronics shop lately, you have probably noticed a lot of empty shelves. Perhaps it has been hard to find your favorite cereal. Or maybe you have had your eye on a certain pair of sneakers. But every time you try to buy them, they are sold out.

If so, you are not alone. Shortages of certain items have become very common. Why? For more than a year, the Covid-19 pandemic has disrupted nearly every aspect of the global supply chain. That is the process of manufacturing and transportation that gets products from the places where they are made to buyers around the world. Often, these products are made in countries in Asia.

How did the world get into this mess? What will it take to end the shortages? Keep reading to get answers to those questions and more.

In short, with the pandemic. The supply chain for many products we use daily starts in factories in Asia, especially in countries like China and Vietnam. When Covid-19 began to spread widely in early 2020, those workplaces were hit hard. Many had to shut down or reduce production because workers were sick. 

Meanwhile, companies that ship goods around the world expected sales to fall steeply during the pandemic, so they cut their schedules way back. But then people stuck at home actually bought more stuff: video game consoles, exercise equipment, and printers for home offices, for example. Shipping companies struggled to gear up again.

In short, with the pandemic. The supply chain for many products we use daily starts in factories in Asia. Many are in countries like China and Vietnam. When Covid-19 began to spread widely in early 2020, those workplaces were hit hard. Many had to shut down or reduce production because workers were sick.

Meanwhile, companies that ship goods around the world expected sales to fall steeply during the pandemic. They cut their schedules way back. But then people stuck at home bought more stuff, such as video game consoles, exercise equipment, and printers for home offices. Shipping companies struggled to gear up again.

Even after workers returned, it remained a challenge for factories to produce goods. That’s partly because many products originate in multiple countries rather than just one. For example, a computer made in China may need a microchip from Taiwan, a display panel from South Korea, and parts from other countries. If just one of those parts is delayed, the factory in China would have trouble assembling the computers. Plus, even when products have been put together, getting them to consumers has proved tricky.

Even after workers returned, it remained a challenge for factories to produce goods. That is partly because many products originate in multiple countries instead of just one. A computer made in China may need a microchip from Taiwan, a display panel from South Korea, and parts from other countries. If just one of those parts is delayed, the factory in China would have trouble assembling the computers. Even when products have been put together, getting them to consumers has proved tricky.

Many of the goods we import from Asia are brought across the Pacific Ocean in big steel containers stacked onto cargo ships (see photo, below). As shipping companies tried to get a surge of products to ports around the world, the result was a lot of confusion. Containers meant for one country were often mistakenly unloaded in a different one. 

Then a lot of ships began arriving at major U.S. ports at the same time, causing another problem: epic traffic jams. For example, in mid-November 2021, more than 80 ships stretched into the Pacific Ocean outside the ports of Los Angeles and Long Beach in California. They often had to wait for weeks to dock.

With many dockworkers out because of Covid-19, there were fewer people to unload the cargo. At the same time, a nationwide shortage of truck drivers, partly due to the pandemic, kept products from being delivered to U.S. cities and towns. The multiple delays led to a major bottleneck in the supply chain—like a section of a busy highway where an accident has shut down all but one lane. 

Many of the goods we import from Asia are brought across the Pacific Ocean in big steel containers stacked onto cargo ships (see photo, below). As shipping companies tried to get a surge of products to ports around the world, the result was a lot of confusion. Containers meant for one country were often unloaded in a different one by mistake.

Then a lot of ships began to arrive at major U.S. ports at the same time. That caused epic traffic jams. In mid-November 2021, for example, more than 80 ships stretched into the Pacific Ocean outside the ports of Los Angeles and Long Beach in California. They often had to wait for weeks to dock.

And many dockworkers were out because of Covid-19. That meant fewer people to unload the cargo. At the same time, there was a nationwide shortage of truck drivers, partly due to the pandemic. That kept products from being delivered to U.S. cities and towns. The multiple delays led to a major bottleneck in the supply chain. That was like a section of a busy highway where an accident has shut down all but one lane.

For one thing, the shortage of certain goods has made those items more expensive. It’s a classic case of supply and demand, a key concept in economics: When the supply of a product is reduced, the company that produces it will often raise its price. And the increased costs of parts, labor, and shipping have only made the situation worse. For instance, automobile supply chain issues—including a shortage of microchips used in making vehicles—caused the average price of a new car to jump from $39,984 in November 2020 to a record $45,872 a year later.

For one thing, the shortage of certain goods has made those items more expensive. It is a classic case of supply and demand—a key concept in economics: When the supply of a product is reduced, the company that makes it will often raise its price. And the increased costs of parts, labor, and shipping have only made the situation worse. For instance, automobile supply chain issues included a shortage of microchips used in making vehicles. That shortage caused the average price of a new car to jump from $39,984 in November 2020 to a record $45,872 a year later.

No one knows for sure. This past January, some economists said bottlenecks in the supply chain seemed to be easing. That suggested that high prices may have already peaked, they said.

Still, many experts think the shortages will continue for some time. They say it will take building new cargo ships, cooperation between countries, and finally getting Covid-19 under control before we can return to normal. 

So those new sneakers that never seem to be in stock? You may have to wait a while longer to add them to your closet. 

No one knows for sure. This past January, some economists said bottlenecks in the supply chain seemed to be easing. That suggested that high prices may have already peaked, they said.

Still, many experts think the shortages will continue for some time. They say it will take building new cargo ships, cooperation between countries, and finally getting Covid-19 under control before we can return to normal.

So those new sneakers that never seem to be in stock? You may have to wait a while longer to add them to your closet.

With reporting by The New York Times

With reporting by The New York Times