XPost: misc.transport.marine, talk.politics.guns, alt.fan.rush-limbaugh   
   XPost: sac.politics   
   From: drooler@gmail.com   
      
   Thousands of air fryers are stuck in factories, warehouses and ports in   
   central China, where shutdowns have stalled millions of dollars worth of   
   inventory for Yedi Houseware, a family-run business in Los Angeles.   
      
   How quickly those backlogged appliances make it to the United States could   
   have wide-ranging implications across the U.S. economy, as domestic   
   manufacturers and retailers brace for another round of disruptions from   
   recent covid-related shutdowns in Shanghai, China's largest city. White   
   House officials are paying close attention to the disruptions to monitor   
   the potential impact on the U.S. economy.   
      
   "Things are getting crazy again," said Bobby Djavaheri, the company's   
   president. "Everything is halted. There are closures this very minute that   
   are adding to the supply chain nightmare we've been experiencing for two   
   years."   
      
   Other executives are dealing with similar scrambles as the situation in   
   China appears to change every day, sweeping up many different sectors.   
      
   Widespread covid outbreaks in China have bought entire cities to a   
   standstill and hobbled manufacturing and shipping hubs throughout the   
   country. An estimated 373 million people - or about one-quarter of China's   
   population - have been in covid-related lockdowns in recent weeks because   
   of what is known as the country's zero covid policy, according to   
   economists at Nomura Holdings. There are also fears that new lockdowns   
   could soon take hold in the capital city, Beijing, escalating the threat   
   to the global economic recovery.   
      
   Anxiety over new disruptions has already caused the Chinese stock market   
   to fall sharply, weighing on U.S. stock indexes as well.   
      
   And there are signs things could only get worse. Continuing lockdowns in   
   Shanghai - a major hub for America's semiconductor and electronics supply   
   chains - has set up automakers, electronics companies and consumer goods   
   firms for months of delays and higher costs.   
      
   The challenges come on top of more than two years of global shipping   
   disruptions that some had hoped would ease this year.   
      
   Tech giants and major automakers rely heavily on Shanghai-based suppliers   
   and ports. Roughly one-half of Apple's top suppliers, for example, are   
   based in or near the city, according to an analysis by Nikkei Asia. (Apple   
   did not immediately respond to requests for comment.) Meanwhile,   
   Volkswagen's chief executive said this month that the automaker is   
   "temporarily unable to meet high customer demand" because of ongoing   
   lockdowns. The company, which had to stop production at certain facilities   
   for more than a month for covid-related reasons, says it is gradually   
   resuming production now.   
      
   "If Shanghai continues being unable to resume work and production, from   
   May, all tech and industrial players involving the Shanghai supply chain   
   will completely shut down, especially the auto industry!" Richard Yu, head   
   of consumer and auto business at Chinese tech giant Huawei, was reported   
   to have said on the social media platform WeChat.   
      
   The delays and closures are adding to costs and could pose another threat   
   to long-term inflation, which is already at a 40-year high. Yedi   
   Housewares, for example, raised prices on all of its products, including   
   air fryers, electric pressure cookers and bread makers, by 10 percent in   
   January.   
      
   Costs have continued to climb since then, in part because of the war in   
   Ukraine. The price of plastic, a major component in air fryers, is up   
   about 5 percent this year, Djavaheri said. The company is also paying more   
   for transportation, since it's begun moving goods by truck from Shanghai   
   to ports in Ningbo, three hours away, in hopes of putting them on a ship   
   there.   
      
   White House officials are closely monitoring the situation in Shanghai,   
   with the State Department providing frequent updates on the potential   
   impacts. New economic data from March shows Chinese exports of good rose   
   by 15 percent relative to last year, but this data does not reflect the   
   impact of the Shanghai lockdown that began at the end of last month,   
   according to a White House official, who spoke on the condition of   
   anonymity to provide internal administration assessments.   
      
   The administration is already seeing "significant impacts" to airports   
   critical to air cargo shipments and links in the supply chain such as   
   factories and warehouses, the person said. Despite the closure of the   
   port, White House officials are seeing alternate ports ratcheting up their   
   work, relieving some of the expected pressure for consumers.   
      
   Mark Beneke, who co-owns a used car dealership in Fresno, Calif., says   
   it's become increasing difficult to secure parts for Asian-made vehicles   
   like Hyundai Sonatas and Kia Optimas since the Shanghai lockdown began a   
   month ago.   
      
   Used car prices are already up 35 percent from a year ago, according to   
   the Bureau of Labor Statistics, and Beneke says he expects them to climb   
   even higher in coming weeks as a result of new shortages and delays.   
      
   "We were expecting prices to start coming down this summer, but it looks   
   like they're going to keep going up," he said.   
      
   In some cases, though, retailers are better positioned to weather the   
   latest challenges than they were a year ago. Many have stashed away extra   
   inventory in U.S. warehouses and stores to guard against supply chain   
   delays. Roughly 90 percent of goods at grocery and drugstores are in   
   stock, according to data analytics firm Information Resources. And the   
   number of import containers sitting on the docks for more than nine days   
   at the ports of Los Angeles and Long Beach has been cut by one-half since   
   October.   
      
   At the same time, consumer demand for many goods - including clothing,   
   toys and furniture - appears to be waning as people spend more on travel,   
   dining out and other experiences that they largely avoided earlier in the   
   pandemic.   
      
   "The demand just isn't there anymore," said Isaac Larian, chief executive   
   of MGA Entertainment, the toy giant behind popular brands like Little   
   Tikes and L.O.L. Surprise. "Sales are slowing down. Families are saying,   
   'I'll take my kids to Disney this summer instead of buying more toys."   
      
   The shipping time for toys from China to U.S. stores has ballooned from 21   
   days to 159 days during the pandemic, he said.   
      
   "All holiday toys have to ship out of China by the beginning of August,   
   but that is not going to happen," Larian said. "The factories are having a   
   tough time getting labor, prices are going up, China keeps closing   
   provinces. The big picture is bad, worse than last year."   
      
   Back in Los Angeles, Djavaheri of Yedi Houseware, says he's just beginning   
   to recover from closures in southern China earlier this year, where his   
   company makes electric pressure cookers. The brand - which has been   
   featured in Oprah's Favorite Things list for three years in a row - is   
      
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    * Origin: you cannot sedate... all the things you hate (1:229/2)