It begins. Car parts Phones and now frozen meats, Freshen up those Preps

Supply Chain Chaos Unfolds At Major Chinese Ports As Frozen Meat Containers Pile Up

New evidence from Bloomberg reveals cracking global supply chains are fast emerging at major Chinese ports with thousands of containers of frozen meat piling up with nowhere to go.

The Covid19 outbreak will remain a dominant issue for 1Q as supply chain shocks are being felt by multinationals on either side of the hemisphere.

Sources told Bloomberg that containers of frozen pork, chicken, and beef (mostly from South America, Europe, and the US) are piling up at Tianjin, Shanghai, and Ningbo ports because of the lack of truck drivers and many transportation networks remain closed.

Seaports in China are quickly running out of room to house the containers and cannot provide enough electricity points to keep existing containers cold. This has forced many vessels to be rerouted to other destinations.

We've already noted that Bloomberg's Stephen Stapczynski recorded footage of an oil tanker parking lot off the Singapore coast last week as refiners in China cut runs as crude consumption has collapsed by more than 4 million barrels per day.

It's clear that a logistical nightmare is unfolding as two-thirds of the Chinese economy has effectively shut down much of its production capacity, producing a massive "demand shock."

The impact on the global economy is already dragging down world trade and could force the World Trade Organization (WTO) to slash economic growth forecasts for the year.

The Chinese economy constitutes about 20% of global GDP, and supply chain disruptions across China could cause a cascading effect that could tilt the world into recession.

But it's not just frozen meats piling up at Chinese ports or a crude glut developing. There's a high risk that product shortages to Western countries could be 60-90 days out.

Alibaba Group's CEO Daniel Zhang warned last week that the supply chain disruption, or "shock," is a "black swan event" for the global economy.

The "black swan" warning was also repeated by Freeport-McMoRan CEO Richard Adkerson several weeks ago after he said the outbreak of the virus in China is a "real black swan event."

China's economy is at a standstill and could trigger the next economic crisis, not seen since 2008.

Sauce

https://www.zerohedge.com/markets/supply-chain-chaos-unfolds-major-chinese-ports-frozen-meat-containers-pile

>>8176351

This Coronavirus Outbreak Is Really Starting To Take A Very Serious Toll On The Global Economy

by Michael Snyder

Factories all over China have been shut down, global supply chains have been hit by an unprecedented shock, the Baltic Dry Index is absolutely collapsing, the tourism industry is being absolutely devastated, and companies all over the globe are warning that sales will be lower than anticipated this quarter. This coronavirus outbreak is already taking a very serious toll on the global economy, and experts are warning that we could still be in the very early chapters of this crisis. If this outbreak ultimately evolves into a horrifying worldwide pandemic that kills millions of people, what will the global economy look like a few months from now?

For the moment, more than 98 percent of the confirmed cases are still in China, but that could soon change.

And if this virus does start spreading in other countries like it is in China, that could rapidly push us into a deep global recession.

Many are fearing the worst. In fact, Forbes is already labeling this outbreak as “a black swan event”…

A black swan event is a term used on Wall Street that refers to a rare and unpredictable occurrence that is beyond what is expected and has severe consequences. It’s derived from European explorers who had previously thought that all swans were white and only white, as that was all they knew. They were overcome with shock and confusion when Dutch explorer Willem de Vlamingh discovered the existence of black swans in Australia.

The coronavirus is a black swan event, which may have serious consequences for your job, the stock market and global economy.

Needless to say, China is feeling the most economic pain from this outbreak so far. In this sort of an environment, it makes sense that very few Chinese citizens would want to buy homes, and that is precisely what we are currently witnessing…

Bloomberg cited a new report via China Merchants Securities (CMSC) that said new apartment sales crashed 90% in the first week of February over the same period last year. Sales of existing homes in 8 cities plunged 91% over the same period.

“The sector is bracing for a worse impact than the 2003 SARS pandemic,” said Bai Yanjun, an analyst at property-consulting firm China Index Holdings Ltd. “In 2003, the home market was on a cyclical rise. Now, it’s already reeling from an adjustment.”

We have never seen an economic catastrophe of this nature since the communists took power in China, and everyone agrees that all of the Chinese economic numbers are going to be absolutely terrible for the foreseeable future.

And since more global trade goes through China than anywhere else in the world, the ripple effects are literally being felt all over the planet.

In fact, the Baltic Dry Index has fallen more than 80 percent since September and is rapidly headed toward an all-time low…

The BDI is now in freefall, closing at 466 on Monday, down over 80% since September 2019. Rates for Capesize bulkers (vessels with capacity of around 180,000 deadweight tons) are now at around $3,500-$4,000 per day — less than a third of their mid-teens breakeven rates.

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moar at sauce

http://theeconomiccollapseblog.com/archives/this-coronavirus-outbreak-is-really-starting-to-take-a-very-serious-toll-on-the-global-economy

>>8176571

Good, If you like frozen fish and grains.