Supply chain issues continue with more storms

There are some consumers who simply say, when the roads are complicated or, in the case of November and December, the roads are destroyed, divert the products through the United States.

“It’s not a viable thing because, as we all know, trucks diesel fuel and diesel fuel is very expensive and the taxes on diesel fuel is very expensive,” says Kris Sims with the Canadian Taxpayers Federation. “So it might help in the short term if there’s an over-abundance of bananas and a scarcity of them, and the market can bear it. But it’s not going automatically give you cheaper bananas because transportation costs really do matter.”

On top of the cost of diverting the transportation of goods, Scott says there is another logistical issue at play.

“You have to remember that if you’re talking about diverting trucks through the States and around up, somebody needs to drive those trucks. And we’re already desperately short to the tune of over 150,000 truck drivers in North America. So now you’re going to ten or twelve person-hours onto a trip to deliver your lettuce?”

But he says the events of the recent months and years should serve as a wake-up call that we can’t go back to the way of doing things in 2018.

by Cheryl Jahn

Supply chain issues continue with more storms

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