Independent journalist JD Rucker has warned of catastrophic things that are about to hit America's supply chain beginning right now.
He quoted an article from the Organic Prepper website penned by Daisy Luther: "We are facing a perfect storm for our supply chain within the next month unless several things change dramatically."
Expounding on this, Rucker cited two things that could seriously damage the supply chain. First, the U.S. only has diesel fuel reserves good for 25 days – which Luther described as "absolutely catastrophic." Second, rail workers are slated to go on strike starting Nov. 19 after President Joe Biden failed to come to an agreement with the workers' unions.
According to Luther, the diesel shortage crippling fuel trucks, trains and ships could throw a wrench in the supply chain. It would also affect home heating as the winter season nears, she added.
OilPrice.com reported that this shortage is spreading across the country, with one company launching an emergency delivery protocol to request a 72-hour advance notice from clients to be able to make the delivery.
Fuel supplier Mansfield Energy said in a note to clients that "conditions are rapidly devolving" and "at times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity" per a Bloomberg report. (Related: Supply chain on the brink of COLLAPSE as diesel price surge hits trucking industry hard.)
Luther stated that some are blaming the shortage on a lack of refining capacity. However, a closer look reveals that refineries are closing down in response to the present administration's policies to move the country to green energy.
Moreover, she pointed out that the impending rail strike was narrowly avoided in September when union representatives and the federal government reached a conditional agreement. This fell through, however, when the Brotherhood of Maintenance of Way Employees Division (BMWED) rejected the deal.
"Railroaders are discouraged and upset with working conditions and compensation and hold their employer in low regard. Railroaders do not feel valued. They resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially in sickness," BMWED President Tony D. Cardwell said in a statement declaring the vote outcome.
Rucker: COVID-19 pandemic triggered supply chain collapse
In a bid to address the issue, the Biden administration announced plans to tap into the Strategic Petroleum Reserve to counter rising gas prices. Also, officials at the White House have not completely ruled out fuel export restrictions.
Two industry unions, the American Petroleum Institute and the American Fuel and Petrochemical Manufacturers, wrote a joint letter stating their concerns in early October. "Banning or limiting the export of refined products would likely decrease inventory levels, reduce domestic refining capacity, put upward pressure on consumer fuel prices and alienate U.S. allies during a time of war," they wrote.
But according to Rucker, the collapse of America's supply chain began in 2020 – during the onset of the Wuhan coronavirus (COVID-19) pandemic. He cited it as a trigger for an economic disaster that has continued to snowball.
Quoting Luther's article, the veteran journalist said Americans have watched the shelves in America getting cleared in a day in March 2020. Things have never been the same since then, Rucker added, given that global shipping was shut down and farmers cannot harvest their food, get it processed and deliver it to stores.
Ultimately, he warned that America is facing a new challenge – in the form of transportation collapse.
Follow SupplyChainWarning.com for more news about supply chain problems.
Watch the video below to know about the impending catastrophe on America's supply chain.
This video is from the JD Rucker channel on Brighteon.com.
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