US: port congestion, symbol of shortages

At the peak of port congestion in October, around 100 ships were waiting to unload their goods in the ports of Los Angeles, the main entry point for US-Asia trade. Before the pandemic, that number had never exceeded 17. This shock has had a dual effect. First, it has halted trade and disrupted supply. Second, it has stimulated demand for goods to an unprecedented degree. Everyone throughout the supply chain has been surprised. The increase in investment spending will reduce the i...