Supply chain interrupted: Here’s everything you can’t get right now
Here’s what’s hard to get, why, and for how long, according to CNN Business’ reporters.
The bank said it expects new car inventories to fall further in August, to around 1 million vehicles, before beginning to steadily increase in September. The firm forecasts new car prices will likely continue to rise over the next few months, peaking around 6% above their pre-pandemic level toward the end of this year.
The problem stems from the global shortage of computer chips, which control dozens of functions in all modern vehicles.
Your morning cup of joe might soon get more expensive because of supply shortages recently caused by bad weather in Brazil.
The frost has driven Arabica coffee prices up this week. But prices were rising even before the cold snap for a number of reasons, including Brazil’s dry weather, protests in Colombia and the increase in shipping container costs, among other factors.
“If these prices stay elevated, then they will have to be passed on to consumers,” said Carlos Mera, who heads up Rabobank’s agri commodities markets team and is an expert on coffee prices. “But big companies have ways to keep prices relatively stable for customers,” he added.
“While I expect shortages to bottom out in the second half [of 2021], it will take another one to two years before the industry is able to completely catch up with demand,” CEO Patrick Gelsinger recently said.
The issue is most pronounced at airports that are near popular vacation destinations, including some in Idaho, Montana, Nevada, Utah and Wyoming.
But airlines and airports are also struggling to get the fuel they need because pipelines shifted away from carrying jet fuel when air travel ground to a near halt last year. Now jet fuel can’t get the pipeline space it needs to keep up with the resurgence in air travel.
To alleviate the issue, some aircraft flying to those affected locations are carrying more fuel than normal so they won’t need as much when they refuel before departing again.
If you’re hoping to scoop up a fresh pair or two of Nikes, you might have to move fast.
Nike could run out of the sneakers it sources from Vietnam as the spread of Covid-19 accelerates in the region, according to a report released this month from Panjiva, the supply chain research unit of S&P Global Market Intelligence. It noted that two of Nike’s suppliers in Vietnam have already halted production.
Although parents might be used to encountering shortages of items such sneakers, backpacks and gadgets later in the school shopping season -— which typically lasts from mid-July through the end of August — products are expected to be in tight supply even earlier. That demand is also coming up against tight inventory levels and delayed shipments which will impact retailers’ ability to replenish products on shelves later in the summer.
“What we will likely see is more limited choice and lower stock levels towards the end of the back-to-school period,” said Neil Saunders, retail analyst and managing director at GlobalData Retail. “Some consumers will inevitably miss out on the things they want to purchase.”
Categories in most danger of shortages include backpacks, stationery, sports equipment, laptops and tablets, he said.
The fast food chain expressed regrets on its website, saying that because of “national ingredient shortages and delivery delays,” some locations might not be able to serve their favorite dishes.
“Apologies for the inconvenience and we hope to feed fans’ current Taco Bell cravings again soon,” Taco Bell said in a statement to CNN Business. It didn’t specify which menu items or cities were affected.
–CNN Business’ Chris Isidore, Parija Kavilanz, Moira Ritter and Charlies Riley, Danielle Wiener-Bronner contributed to this report.