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Originally Posted by swimmer_spe
We don't have the rail capacity. The supply chain issues we are facing shows that.
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The freight rail operators will add capacity if they need to. The carbon tax is going to push freight to either move more by rail or electrify. Either way, a growing carbon tax makes the current long haul trucking model unsustainable by the end of the decade in Canada.
Quote:
Originally Posted by swimmer_spe
I feel this is going to change in the next decades. The companies that can adapt the best to stopping these practices likely will see more loyalty. People hate the fact that they cannot get stuff. If one company in that sector can change, then more people will buy from them. It's basic supply and demand.
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Supply chains got disrupted less because of delivery than a loss of various component manufacturing capacity, like the microchip shortages hitting the auto sector. None of this is going to change substantially. You don't see Ford and GM rushing out to build entire semiconductor divisions. They will simply adjust how they contract for certain items in the future. Yes, we'll see a little more slack in the supply chain and more geographic diversification, so that not everything is made in China, and not all chips are made in Taiwan, etc. But beyond that? Not much.
The cost to reshore all that manufacturing, bring a whole bunch of supply chains in house and build massive stockpiles at every step of the way, is basically impossible.
This video of pears grown in Argentina, packed in Thailand and then sold in the US, provides a good example of why global supply chains work the way they do:
• Video Link