The Canadian trucker convoy has been protesting the vaccine mandates and other covid restrictions that are implemented in Canada. The truckers have blocked many key borders between the U.S. and Canada. The main routes that handle the steel, aluminum and other parts that keep car factories running on both sides of the border were essentially shut down Wednesday and Thursday due to the convoy. The convoy has caused many car companies to threaten paychecks as well as hurting the overall global supply chains which are already fragile. The borders the truckers are blocking block $140 million in car supplies from crossing everyday.
The effects of the convoy are going to continue hurting smaller auto parts suppliers, for independent truckers and for workers who get paid based on their production. These small companies also do not have the power to raise prices like the bigger part makers do. Companies and workers in Canada are more likely to suffer because they are more dependent on the United States. “Anderson Economic Group in East Lansing, Michigan estimated that workers in the state would lose $51 million this week across automakers and parts suppliers and in the transportation and logistics industries.” To add on, layoffs could be necessary for businesses if this blockade does not show any signs of slowing down.
With the supply chain already causing issues for car manufacturing, the blockade adds to it which will cause the supply of parts for cards to drop even more which will most likely mean that prices will rise as well as labor being laid off due to a lack of production. The freedom convoy really has hurt the manufacturing sector and its impacts will spread across all of North America where more plants are. Also, the convoy could spread into a city and that would cause transportation, government operations, and many more sectors to be economically hurt.
https://www.nytimes.com/2022/02/10/business/economy/canada-protests-cars-automobiles.html
Today, I read that a couple of factories shut down some departments due to lack of inventory. I understand people who does not want to vaccinate. Everyone has a freedom of choice. However, your choice should not hurt other people. In this case, we see that many truck drivers worsen the situation, which is already unstable
ReplyDeleteI found it incredible that such a small group of individuals could have such a profound control over the supply chain of the United States and Canada. I personally think that the government should extend some type of olive branch to the individuals responsible so these issues can be solved whether it is an exception to the vaccine or some other type of incentive.
ReplyDeleteIts interesting to see how conflicts with social issues (vaccination status) impacts the economy. Hopefully both sides can come to an agreement and resume their normal supply chain operations. I think these conflicts are going to be a key part of how this pandemic is remembered in history.
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