At its core, the problems impacting nearly every disruption along the globally interconnected supply chain is a lack of labor. A shortage of workers – a problem that existed pre-pandemic, but one that has only worsened since – means that goods can’t get from the ports to warehouses, to then find their way to retailers and consumers.

• In September, more than 70 container ships at ports in Los Angeles and Long Beach were unable to unload goods because of a shortage of workers.
• A survey of local chamber of commerce leaders by the U.S. Chamber reveals that 90% of respondents say that labor shortages are limiting economic growth in local areas.

The food distribution and production industries have been affected by shortages in workers on production lines, in warehouses and driving delivery vehicles. Labor disruptions in the supply chain are forcing schools to substitute menu items when their orders are not delivered – and they are having to place additional orders at a higher cost, find new local suppliers, and work with local restaurants.

• A back-to-school survey by the School Nutrition Association, which represents more than 55,000 school nutrition professionals, found that 97% of program directors who responded were concerned about continued pandemic-related supply chain issues, with 65% citing "serious" concerns. The second top concern was staff shortages, according to the survey.

Australia faces food and grocery shortages similar to those in Britain unless the definition of close and casual contacts of positive COVID-19 cases changes before lockdowns come to an end.

• The Australian Food & Grocery Council said manufacturers in NSW and Victoria have had between 25 and 60 percent of their staff in quarantine at any one time during the Delta outbreak and have had to stop production and dip into inventories to keep supplies flowing.
• Tanya Barden, Council Chief Executive, said if workers exposed to COVID-19 were forced to quarantine for two weeks as lockdowns eased and the economy opened up, grocery stocks would start to run down, leading to empty supermarket shelves.
• The Grocery Council’s annual State of the Industry report revealed that food and grocery manufacturing turnover rose 4.1% to almost $133 billion in the 12 months ending in June 2020.

A record level of imports is causing continued shipping delays in the U.S. as hundreds of thousands of containers are being held on ships or in terminals waiting to be moved inland. When containers are moving, they are subject to additional congestion at warehouses, distribution centers and freight rail yards, many of which are at full capacity. Experts say that port congestion is expected to last into 2022.

• The National Retail Federation projected that 25.9 million containers will enter the U.S. in 2021, which would break 2020’s record-setting 22 million boxes.

The vast network of ports, container vessels and trucking companies that moves goods around the world is strained. Unmet demand and filled ports have caused record costs to ship goods over the last several months, meaning that shoppers are likely to face higher prices and fewer choices this holiday season.

• To try to ease pressure on the supply chain, in October President Biden unveiled plans to expand operations to 24/7 at the ports of Long Beach and Los Angeles, which handle 40% of America’s cargo.The administration is working with the ports, unions, and leading retailers and shippers.
• In the past year, the cost to have a container shipped by freighter from China to the West Coast has risen more than sixfold from $3,000 in August 2020 to $20,000 in September 2021.  

Food prices are increasing due to strong consumer demand that have driven up the cost of other goods and services in the U.S. The strong demand from consumers comes as many are eager to spend their cash from government stimulus checks and after COVID-19 restrictions over the last year.  

• Typically, Americans spend 52% of their food dollar at restaurants and 48% at grocery stores. However, during the height of the pandemic last year, 80% of families’ budget went to groceries. As vaccinations picked up this year the mix has evened out.
• Although COVID spikes due to the Delta variant have again affected food consumption at home. The fluctuations in demand make it difficult for manufacturers to plan for production and deliveries.
• Additionally, early in the pandemic, Americans were more concerned about their ability to purchase food rather than rising prices, according to surveys by the Food Marketing Institute.
• In March 2020, 62% of shoppers polled said they were concerned about finding food versus 35% being concerned over prices.
• In August, 50% said they were concerned over prices versus 46% worried about being able to purchase food.

Impacts of the COVID-19 pandemic on the global supply chain have caused uncertainty ahead of the critical holiday season, which can account for over half the annual sales for retailers. Severe shortages of goods and drastically higher prices are projected during the holiday season, as the costs and time to ship has dramatically increased due to a shortage of shipping containers and increased demand.

• The time it takes to ship an item from Asia to the United States has roughly doubled — 15 days by air, 90 by sea — during the pandemic.
• The backlog, coupled with labor shortages and pandemic-related shutdowns at every point in the process, has led to months-long delay for many imports.

The consumer confidence index increased in late October to 113.8 from September’s 109.8, ending three straight monthly declines and contrasting with a University of Michigan survey of consumers earlier in the month showing sentiment falling. The rebound in confidence has coincided with declining coronavirus infections.

• Consumers are upbeat about both current conditions and the short-term outlook, with the labor market differential – derived from data on respondents' views on if jobs are plentiful or hard to get – reaching 45 in October, its highest in 21 years.
• More consumers intended to purchase household appliances, buy homes and travel in the next six months.