(The Economic Collapse Blog)—When I awoke early on Tuesday morning, I was stunned to learn that the Francis Scott Key Bridge in Baltimore had collapsed. We are being told that it was a tragic “accident” and that there is no evidence that any foul play was involved.
Hopefully that is true. But no matter how it was caused, this tragedy is going to have an enormous impact on U.S. supply chains. And of course this comes at a really bad time, because Houthi missile strikes in the Red Sea and low water levels in the Panama Canal have been putting a tremendous amount of strain on global supply chains recently.
According to Bloomberg, it appears that the Port of Baltimore will be “out of commission indefinitely”…
The Port of Baltimore — the biggest handler of US imports and exports of cars and light trucks — looks to be out of commission indefinitely. The resulting bottleneck could accelerate a shift of goods through West Coast ports. Another crucial question: Which other ports have spare capacity to handle the Ro-Ro vessels that carry automobiles if Baltimore is closed for an extended period.
This is a really big deal, because over 750,000 vehicles came through that port last year alone…
The port is the busiest in the U.S. for car shipments, handling more than 750,000 vehicles in 2023, according to data from the Maryland Port Administration. It is also the largest U.S. port by volume for handling farm and construction machinery, as well as agricultural products.
In addition, a whole host of prominent retailers are very dependent on the Port of Baltimore…
Retailers like Home Depot, Bob’s Furniture, IKEA, and Amazon are just some of the companies that use the port to import goods. Other top imports include sugar and gypsum.
“This will have an impact for trade all along the East Coast and it will continue until we know how quickly” the port can reopen, said Richard Meade, editor-in-chief of the shipping journal Lloyd’s List.
Vessels were already being diverted to New York and down to Virginia on Tuesday, said Meade. “There will be dozens of diversions in the next week and hundreds in the coming months as long as Baltimore is shut down.”
This isn’t the end of the world, and shipments can certainly be diverted to other ports.
But we are talking about the 11th largest port in the entire nation, and so this will definitely be a serious blow…
More than 52 million tons of foreign cargo, worth some $80 billion were transported out of the port last year, according to Maryland Gov. Wes Moore. The 11th largest port in the nation, Baltimore served an average of 207 calls a month last year, according to the shipping journal Lloyd’s List.
In addition, it is going to take a very long time for the Francis Scott Key Bridge to be rebuilt. As Lara Logan has pointed out, that section of I-695 was the “second busiest strategic roadway in the nation for hazardous material”…
Second busiest strategic roadway in the nation for hazardous material now down for 4-5 years – which is how long they say it will take to recover. Bridge was built specifically to move hazardous material – fuel, diesel, propane gas, nitrogen, highly flammable materials, chemicals and oversized cargo that cannot fit in the tunnels – that supply chain now crippled.
One expert is projecting that it will take more than two years to rebuild the bridge…
While trade is nimble and will reroute, over the long term the bridge will need to be fundamentally engineered and rebuilt, and that will take years.
“It will be in excess of two years,” said Meade, of Lloyd’s List. “There will be significant disruption and cost to this infrastructure project. In 1977, the bridge cost $60 million. Take in inflation and the rapid pace to redesign and build will increase procurement premiums. This will be a very expensive project.”
I would be shocked if it happens that quickly.
We shall see.
In any event, we are talking about a multi-faceted crisis that is going to be affecting U.S. supply chains for the foreseeable future.
At a press conference following the collapse of the bridge, Transportation Secretary Pete Buttigieg openly admitted that we are looking at a “major and protracted impact on supply chains”…
“There is no question this will be a major and protracted impact on supply chains,” Transportation Secretary Pete Buttigieg said during a Tuesday afternoon press conference in Baltimore.
I think that this is the first time I have ever agreed with Pete Buttigieg on anything.
Sadly, this is just the beginning. In the months ahead, U.S. supply chains will be hit with additional challenges. So if there are things that you are planning to purchase, I would do that now.
Before I end this article, there is one more thing that I wanted to mention. Global supplies of cocoa just keep getting tighter and tighter, and on Tuesday the price of cocoa jumped above $10,000 per metric ton for the first time ever…
Cocoa prices hit a record Tuesday as supply constraints fuel prices higher.
Futures for May delivery were up 3.9% at $10,030 per metric ton, marking the first time the commodity breaks above the $10,000 mark. Cocoa has been on a tear this year, soaring nearly 138%.
Difficult weather conditions and disease have affected production in West Africa, which produces about 70% of the world’s cocoa. The two largest producers, Ivory Coast and Ghana, have been hit by a combination of heavy rain, dry heat and disease recently.
In January, it was less than half that price.
If you love chocolate, stock up on it while you still can. Of course the same thing could be said about countless other things.
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Do you remember the supply chain problems that we experienced a couple of years ago? Well, what is eventually coming is going to absolutely dwarf that. Many are using the term “black swan event” to describe the collapse of the Francis Scott Key Bridge in Baltimore, but the truth is that we are moving into a time when there will be one “black swan event” after another.
So get prepared while there is still an opportunity to do so, because the months and years ahead of us are going to be extremely chaotic.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
Murphy’s Law. It could have been much worse with a greater loss of life. Thankfully the bay pilots issued a Mayday immediately and told bridge authorities to stop all traffic using the bridge. They saved lives.
Maybe if we weren’t sending so much hush money to Zelensky, prosecuting political rivals, and most of all, providing hundreds of millions in benefits to illegal aliens imported into the country, we have more resources to quickly rebuild.
I grabbed a screen shot of CFPs front page. Interesting how fast all of media came to the defence of the the ships captain and crew. What? 6months minimum before supplies off the dock start moving in a timely manner?
Is it just me or does it seem we’ve lost the blessings of the Almighty. Seems it’s time to pay the tab that America has run up in its arrogance and hubris.
Oh, and I fully expect to have my comment censored, can’t be spooking the cattle. Don’t worry, there has to be something good on the TV.
When the Sunday laws – which are on the books now – are enforced with fines the stone tablets and the Ark of the Covenant will be brought out of the cave that David made and Jeremiah hid them in, it will be seen that the Pharasees and the Pope changed God’s Word. Then the choice will have to be made – follow the UNs commandments that are and will be diametrically opposed to God’s Word or follow God’s Commandments inviting persecution, starvation or decapitation. There are seven years left
Not an accident. We are in the only war in history where the people are ignorant it’s happening and their leaders fight with the enemy to destroy within.
Mayor Pete’s on it. He’ll reroute all cargo through West Bendover, Indiana.
Get the tugs busy and get that wreckage pushed or pulled out of the way. Be systematic disposal and rebuilding after the port is bustling again.
gCaptainDaily has already explained how this will have little supply chain impact with the exception of importing European autos. I understand your job is to scare people, but people can relax.
They’ll have a channel cleared through in 4-6 weeks, tops.