I think the focus of conjecture should be the number of logistic links that exist in each subcomponent of a complete bicycle. It's not enough to point out the inability of lesser priced parts like chains and derailleurs to "eat" the shipping cost increases but to look at the number of shipments of supplies are represented by the makers of those parts. If a chain maker loses timely supply of the rodstock they make into rollers you could have chain becoming a secondary delay to the complete product.
Andy Cheatham Pittsburgh On Sunday, January 31, 2021 at 11:30:48 AM UTC-5 aeroperf wrote: > Patrick— > > It is both. > Example: a lot of bike components are made in China, but they are having > blackout problems due to a coal spat with Australia. > > https://oilprice.com/Energy/Coal/Chinese-Cities-Go-Dark-Amid-Energy-Spat-With-Australia.html > > Example: there is the global shipping container shortage (actually the > containers are in the wrong places), which jacks up the shipping costs. > > https://www.cnbc.com/2021/01/22/shipping-container-shortage-is-causing-shipping-costs-to-rise.html > If you put 1000 frames in a container and the cost goes from $1200 > ($1.20/frame) to $6000 ($6/frame) you can probably absorb it. But what if > that happens for chains, or derailleurs? > > Add these problems to brendonoid’s excellent post, and things are just > getting slow. > It will loosen up again, but until it does we wait. > > On Sunday, January 31, 2021 at 5:42:53 AM UTC-5 brendonoid wrote: > >> But I would assume that when you have a trained workforce (say people >> with the skill to weld/braze bicycle frames) You have x amount of capacity >> in a factory. You can't just magic more workers and a bigger factory >> because demand has suddenly spiked. Financially it doesnt make sense to >> invest in growing your business either because that demand increase is >> percieved to be a bubble or anomoly, you wouldn't want to spend all your >> sudden profits on capacity you wont need next year. >> Also the nature of the bubble has restricted your current workforce AND >> your supply chain is experiencing the exact same problems you are. >> Shipping is also at capacity but I can tell you that is the most flexible >> and most easily overcome obstacle. >> > -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/rbw-owners-bunch/c9e1c56e-e88e-409e-a032-39818cab6a74n%40googlegroups.com.
