For those of you still processing last year and can’t believe Halloween is right around the corner, it might be worrying to think that Christmas and the year 2022 is only a couple months away. For anyone thinking about doing your last minute Christmas shopping on amazon or at the mall, may not be informed on the collapse of the supply chain coming into Canada. The repercussions of the collapse has led to a country-wide shortage of supplies, and skyrocketing prices for food, gas, and big ticket appliances. Sadly the situation is unfolding at a rate faster than the recovery efforts to get it under control, leaving store shelves empty. Many are holding out from buying while others are stocking up, unsure whether prices will drop anytime soon.

Looking at this situation from an outside perspective will most definitely put you on edge, so to better understand the Canadian supply chain we must take a deep look into how our food, electronics, appliances, etc. get to the store shelves.

Taking you back to the middle of the 2020 pandemic, during the breakout of COVID-19, many if not all Canadians were stuck inside with nothing to do. Closures of restaurants, stores, and other services were simultaneously closed, with the exception of essential services. People instead spend their money on tools, workout equipment, cooking appliances, and other manufactured items. Many scared Canadians panic bought food, and essentials, uncertain to what extent the lockdown would last. The shift from buying services to manufactured goods took place on a global scale, putting manufacturers in a tight spot. 

Pixabay / mkaylani

Exports from China alone contributed to 28.7% of the world’s exports of manufactured goods. This accounted for nearly $4 trillion of China’s overall economic output in 2019. Exports from all of Asia went up 15% within 2 years since the start of 2019. Now with the flood of manufactured goods, boats are being halted at harbours, sitting at sea. The diminished workforce severely damaged by the pandemic isn’t able to operate at full capacity slowing down deliveries. In short, there are too many goods and not enough workers.

Shortages of workers isn’t the only thing slowing down the supply chain. Shipping containers are in short supply attributing to the ever growing global traffic jam. Containers packed full of  exported goods from Asia were promptly sent over to Europe and North America during the midst of the COVID-19 outbreak. Moving ahead just a couple months, these same steel containers lay on the harbours and docks empty with no possible way of getting them back to Asia. While Asia sent over goods across seas, countries such as our own were still in the process of implementing strict COVID-19 restrictions, meaning sailors were out of a job for the foreseeable future, cancelling most return trips of the containers. The lack of communication between countries and the stubbornness of others, broke the balance of imports and exports. The pile up of containers has caused a butterfly effect, creating disorganization, loss of product, and crowding in the harbours, stopping ships from dropping off their load. 

Truck drivers, mail distributors, and other workers that contribute to the supply chain have lost incentive to continue work in their previous fields. Prices for food and gas have jumped, leaving many questioning whether it’s worth the effort. Wages since 2017 have been stagnant while cost of living has increased about 9% according to Statistics Canada. Blue collar workers aren’t willing to spend more money than what they bring in. People are still relying on government cheques and funding programs. Vaccine mandates are still getting backlash from an alarmingly high rate of workers in Canada. Vaccine mandates requiring those working must be fully vaccinated have been attributed to hesitancy in the workforce. Many feel the vaccine mandates encroach on their freedoms while others do not have the resources to get the vaccine. All in all there is a disconnect between government and workers creating a stalemate where no one can come out on top.

Pixabay / Pexels

Strapped with time, people working aboard the ships are frantically trying to combat the overcrowding of containers and the constant exports from Asia and neighbouring countries. However this rushed approach comes with its down sides. On Oct 27th, 40 containers were dropped into the ocean near Cape Scott in B.C. The cargo carrier caught on fire when a handful of containers caught on fire while entering north Vancouver Island. The ship was carrying over 52,000kg of a highly flammable chemical called potassium amyl xanthate. Investigators attribute the cause of the fire, but do not know for certain what had ignited the chemicals. Goods such as appliances, food, and even the steel containers themselves are washing up on shores around Vancouver. Gillian Oliver, the advanced planning unit leader with the coast guard put out a press statement encouraging people who see containers and waste floating up on shore to report your sightings to the coast guard or local law enforcement. The coast guard has contained the fire, but smoke on the ship is still prevalent. Officials say the smoke could be coming from within containers carrying tires. 

There are many key points in the supply chain that are accredited to the worldwide backup of manufactured goods. From truck driver shortages, to crowded docks, and rising costs, the supply chain is broken in many sections. These problems may seem quite removed from your life as a consumer of these goods but you play an important role in all of this. As a consumer you dictate the demand of products. Producers of these products must react to the demand of consumers and supply them with the appropriate amount of goods. At this point we as consumers need to slow down the supply of products, by deliberately considering what products we need. We must prioritize our needs over our wants. Or just maybe, just maybe, save your money.

At this point there is no clear solution to fix the supply chain. The damage done is too severe to undo what we’ve already done.

“I think probably at some point halfway through 2022, we’re going to see some resolution.”

Laurie Tannous, special advisor to the Cross-border Institute, University of Windsor