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September 2021
FEED & MEDICATION
NEWSletter
320-235-8860
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Hello All,
The world supply chain “system” is broken.
I'll use an old strategy to explain. Who, What, When Where, Why & How.
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There is an old saying; "a chain is only as good as its weakest link." Picture an hourglass such as the one beside this paragraph. The small, center spot is the weakest link. That center spot is people.
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What: Shortages, rising prices Capacity is one major issue. Ocean freight is taking 30-50 % longer so basically all people and ships are in use."
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When: Now7 For example have you seen the youtube video about Ford storing new trucks that are missing parts at the Kentucky Speedway? This is mostly due to the shortage of semiconductors made over seas. Link below:
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Where: Logistics and Manufacturing I had a link to a global shipping map in March. If you didn't or even if you did, take a look at it today, zoom in and enlarge the ports by China and the coasts of United States. It is crazy how many ships are waiting to load and unload. Link below:
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Why: People Whether it is the shortage of truck drivers, dock workers, manufacturing plant workers, and/or many others involved in the supply chain. Significant causes are: Covid 19 and Climate change. These issues are changing our workforce and landscape.
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How: Just in time inventory no longer works Whether it is LTL shipping that has gone from 1-2 day shipping to up to 14 days or shipping containers that took weeks, now take months to receive.
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My elderly Great Uncle once told me the secret to life was to get up every morning and P. I stood there dumbfounded and slightly concerned, until he continued with; "Prior Planning Prevents Poor Performance" {Another great strategy} Costs of just about everything are increasing. It seems like every 10th email I get has a price increase announcement.
We are entering peak shipping, and hurricane season. Let's not forget what Hurricanes Katrina and Harvey did to trucking and building supply prices. Currently, Hurricane Ida's wind and rain are leaving their mark. Lately we have seen LTL & Direct Truckload shipments not getting delivered as soon as they used to be. If needed, order ahead and expect some delays.
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While it seems like prices have been stabilizing a little, most of the major Amino Acids are projected to be tight through the end of the year. To me, it feels like we are about to have another wave of 5-15% increases this fall.
Pricing in graphs reflect our highest retail price. We carry multiple brands of amino acids. Full pallet, truckload, customer pickup and other factors may reduce your purchase price.
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Pricing in graphs reflect our highest retail price. We carry multiple brands of amino acids. Full pallet, truckload, customer pickup and other factors may reduce your purchase price.
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The first article: The reason freight is going up is predominantly because of bottlenecks in multiple places in the supply chain. There simply are not enough ships and container spaces to handle demand. Covid has slowed down previous ship times.
The second article tells about how ocean freight had a similar run on available ships back in 2007-2008. We have yet to see price increases as high as were experienced at that time.
The third article tells of companies who are sending in teams to "rescue" their cargo from storage warehouses. Sounds like a Mission Impossible Movie, maybe they could get Tom Cruise to help.
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China bulker pileup dwarfs California container-ship gridlock
COVID restrictions in China push dry bulk congestion to all-time high
August 20th, 2021
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Battle of the shipping booms: Containers ‘21 vs dry bulk ‘07-‘08
Once upon a time, dry bulk — not container shipping — was king
August 25, 2021
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Stealing your own freight: O’Hare cargo delays force drastic measures
Logistics company sends in rescue teams, buys off warehouse personnel to retrieve shipments
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Got Something Bugging you?
Maybe these can help.
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LTL Freight has had some delays. We have noticed some deliveries are being made a week to ten days after product is shipped.
Sharing this information with you as we have seen shipments that have been sent, not getting delivered as soon as they used to be. If needed, order ahead and expect some delays.
Thank you for your patience!
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PALS sells primarily 3 things: animal health products, animal agriculture equipment, and building & repair services.
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Animal Health:
Feed ingredients: While we supply several smaller mills, we have found we are a good secondary supplier for other distributors, mills and farms.
Disinfectants / Cleaners / Water line cleaners / Antibiotics / Water Solubles / Insecticides / Rodenticides / Litter Treatments
Equipment:
Our largest volume is in the hog industry. Followed by turkey & chicken. We
sell some cattle and dairy equipment; mostly feed lines and fans.
(We are actively trying to build this category)
Service:
Our in house teams work in all service areas. We work closely with several subcontractors
on installation and service work. want them to do here? (Call-to-Action)
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We run route trucks 5 days a week. We also utilize direct shipping. It can be one box, pallets, or full truckloads.
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Open Monday - Friday 7am - 4pm
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PALS, Inc | 1-800-328-8842 | 3735 1st Ave W Willmar, MN 56201 | www.palsusa.com
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