The slow return to work is a cause of the supply chain's ability to meet demand, according to American Trucking Association President and CEO Chris Spear on Tuesday. Spear spoke on Mornings with Maria about the impact of the chronic shortage of talent on the supply chain, which has resulted in cargo sitting unused and unloaded at U.S. ports.
He said that now truckers are moving more with less people and even less equipment. Spear told host Maria Bartiromo that we are at the edge of a cliff right now.
He believes that a year of policies that have led us there generally stem from rewarding people not to return to work, not just in trucking, where we are short 81,000 drivers, but across every sector of employment. The latest JOLTS report on job openings was released earlier this month, with 10.6 million in November after hitting a record 11.03 million the month before.
Spear said that everyone is experiencing a slow return to work, whether at the grocery store or when traveling by airplane, and that the situation is contributing to the supply chain crisis.
Spear told Bartiromo that it was really having an impact. Inflation is seen as a 40 year high. Inflation went up at the fastest pace in nearly four decades in December, as rapid price gains fueled consumer fears about the economy.
The consumer price index increased by 7% in December from a year ago, according to a new Labor Department report released Wednesday, marking the fastest increase since June 1982, when inflation hit 7.1%. The CPI, which measures a wide range of goods from gasoline and health care to groceries and rents, jumped by 0.5% in the one month from November.
Economists expected the index to show that prices went up 7% from the year-ago period and 0.4% from the previous month.
The price of energy fell 1.1% in December from the previous month, but they're still up 29.3% from last year. Gasoline, on average, costs 49.6% more than it did last year. Food prices have risen 6.3% over the year, while used car and truck prices are up 37.3%. Shelter costs, which make up nearly one-third of the total increase, went up 0.4% for the month and 4.1% year-over-year, the fastest pace since February 2007.
Spear argued on Tuesday that we are all taking a pay cut in 2022 because of bad policies.
He warned that it could be more than three quarters before the situation is alleviated.
Spear continued, blasting the policies of the Biden administration, but it doesn't have to be this hard or this long if you institute good policy rather than just being perceived as doing something.
He argued that vaccine mandates are adding additional headwind to the industry that is moving 72% of domestic freight. Spear argued that adding additional layers and mandates on top of that isn't going to make it easier to deal with if you're concerned about the supply chain.