Supply Problem Could Be Exacerbated by Russia-Ukraine Conflict

 

Photo: Sky News

Why should the U.S. people care about what happens in Ukraine?  Does it directly impact Americans?  Besides standing in arms with our brethren in NATO forces?  Actually, it does and can hurt Americans directly by damaging/delaying supply chains. 

A recent briefing by Politico Nightly introduces readers to the reality that indeed the conflict can have a negative impact on supply chains into the United States:

U.S. concerns about potential Russian retaliation have ramped up since a report published earlier this month by Techcet, a market research group, estimated that more than 90 percent of neon supplies used by U.S. semiconductor manufacturers come from Ukraine, while 35 percent of palladium supplies come from Russia.

Many products that are used on a daily basis by Americans have no real origin.  What do I mean by this? The origin of the product begins and ends with a click on Amazon.  Where that product originates from is not of importance.  Although, during the COVID-19 pandemic, Americans started to educate themselves on countries that produce supplies that are shipped to the United States.

They were forced to come to terms with the backlog of supply ships sitting at American shipping ports waiting to be unloaded.  Truckers have been working overtime to get these supplies and goods to our local cities for delivery.  That is the extent of the knowledge of manufacturing from overseas.  

Why Is that the case?

Each of us can only handle so much information on a daily basis.  Between the current events and social media, Americans are overwhelmed.  Although, that is no excuse to not learn a little about where products are made and shipped from.  Americans often surveyed would prefer if the military were not involved in overseas conflicts.  

The problem with that contradictory wish is that if we (as a country) were not dependent on products made in various countries, then we would not have to protect our commercial interests with politics and the military.  They are intertwined.  We find ourselves at a dilemma.