The Supply shitshow

[neufox47]

No body have a line on roofing supplies?


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[old_newguy]

How long until this impacts home insurance?

[Danno]

I just got a quote from a roofer, it didn't sound like supply chain issues were a problem (other than OSB decking, if needed, is crazy expensive).

[XXX-er]

So called “Mexican Overdrive”

Wether it saves fuels or not depends on if carbureted or fuel injected.

Carbureted engines use fuel both while idling out of gear and while in gear.

Fuel injected engines use fuel while idling out of gear, but if in gear with no throttle they use zero fuel.

So “Mexican Overdrive” does not save fuel with fuel injected engines

Cuban taxi bro was probably carbureted, so potentially he was saving fuel, but a very minimal amount.

it was a Lada ... Russian overdrive

[Toadman]

No body have a line on roofing supplies?


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Does the color of the tarp matter?

[BCMtnHound]

How long until this impacts home insurance?

Ya, just looking at my annual renewal papers. If the house burnt tomorrow, no way it's getting replaced at the stated value in the policy. Time to call the agent I guess.

[Conundrum]

Read your coinsurance clause and decide what to do from there.

[Core Shot]

FYI. If you’re underinsured by 80% or more the carrier can reduce payouts.

If you’re 50% insured a $20k claim might only pay 10k

Not sure how often they do that. But they have the right.

[jackstraw]

shitshow

...A consequence of [Covid} this is that almost all of the remaining containers in Asia headed out to Europe and North America, but those containers did not come back quickly enough. Massive workforce disruptions due to coronavirus restrictions in North America affected not only ports, but cargo depots all across the country as well as inland transport lines. Without adequate staffing, containers started to pile up. As borders tightened, customs became more complicated to clear as well, worsening congestion. In addition, there were rapid shifts in tradelane demands that were challenging for carriers to adapt to.
There was no time to clear the very large backlog of containers with limited workers before more started arriving. North America currently faces a 40% imbalance; which means that for every 100 containers that arrive only 40 are exported. 60 out of every 100 containers continue to accumulate, which is a staggering figure considering the China to USA trade route sustains on average 900,000 TEUs per month. That’s during a normal year; the current shipping volume is at record highs this quarter (up 23.3% compared to last year, according to Descartes Datamyne)
Container shipping rates have been surging on all East to West shipping routes since May, with the highest rate upturn hitting the transpacific. The Drewry World Container Index is currently at its highest in four years. Eastbound container freight rates have not just increased a lot since the beginning of the COVID-19 outbreak; they have more than doubled, eclipsing all historical highs. SE Asia to US rates have spiked from around $2,000 up to an eye watering $4,500 per 40ft container.
Needless to say, the lack of containers can’t satisfy current shipping demands, and we have a full-blown container crisis on our hands. Any available containers are booked out immediately, which is why we strongly urge our customers to book cargo as early as possible.
Although there are some measures underway to help resolve the deadlock, such as carriers attempting to reduce free time and detention period as well as more efficient unloading systems, realistically we won’t see the global container shortage crisis returning to normal for the coming months. Unfortunately, it’s also predicted that contract freight rates will remain high throughout next year.

[highangle]

Ya, just looking at my annual renewal papers. If the house burnt tomorrow, no way it's getting replaced at the stated value in the policy. Time to call the agent I guess.

Don't worry about it, they'll up your rates soon enough if they have to pay out more than they expect in a year...

Homeowner's insurance companies know they can be on the hook for way more than 100% of the policy amount.
A homeowner with a major claim can't wait around for shit to go on sale, and oftentimes the insurance company must rebuild within X time, per the policy and state regulations. Larger homeowners and P&C companies factor in the potential for large scale disasters with labor, supply, & materials shortages when they set their policy rates.

[Conundrum]

Don't worry about it, they'll up your rates soon enough if they have to pay out more than they expect in a year...

Homeowner's insurance companies know they can be on the hook for way more than 100% of the policy amount.
A homeowner with a major claim can't wait around for shit to go on sale, and oftentimes the insurance company must rebuild within X time, per the policy and state regulations. Larger homeowners and P&C companies factor in the potential for large scale disasters with labor, supply, & materials shortages when they set their policy rates.

I'm not sure you know how all of this works. Insurance companies have the responsibility to pay for a rebuild per the policy contract, they are under no obligation to build anything under any timeframe. The amount they pay will be governed by contract stipulations such as agreed value, replacement cost, ACV, guaranteed replacement cost, extended replacement cost, alternative living expense coverage, cash-out options, etc.

All of this is spelled out in the policy contract and it's worth knowing what's in your policy. Yes, homeowners insurance companies know they can be on the hook for more than the policy limit if you purchase guaranteed replacement cost or extended replacement cost and they will charge accordingly for those policy riders.

I have not seen a state regulate a timeframe that an insurance company has to rebuild a home. In fact like in California, the opposite is true. CA now has a law that will allow the policy holder to take the money and move because there are not enough builders available (Paradise) even if there is not a cash-out clause in the policy which used to be the governing form in this situation.

Large homeowners and P&C companies first set their rates based on the reinsurance treaties from the reinsurance companies that are looking at large scale disaster likelihood then look to materials and labor costs. They also set their rates based on market performance of the reserve fund and profitability goals of the company. Sure, loss cost and ratios are part of it too.

[highangle]

You'll prob have to admit that most lenders will stipulate Replacement Cost policies and most homeowners will leave them that way.
Well, unless they're Bennys who think they can save a couple hundred a month by only insuring the value they still owe the bank [and go on to get righteously punk'd by minimum coinsurance clauses whenever they file a claim]...

Then there's Loss of Use riders, which are also in most homeowner's insurance policies, and which can add up if, say, an insured's house burns down and his family has to live in a hotel or lease a house for a year since that was the shortest term they could get.

Point being, most of our homeowners policy writers are on the hook for more than the face value of our homeowners insurance.

But of course you're right about everyone ought to be aware of what his/her homeowners policy covers, and make sure they're not under-insured.

[Skidog]

Looking for a shed for the yard. Lol prices doubled since last year. R11 build materials. 10x10 no frills shed devliered for $4k. Lol I'll wait. It's not necessary but would be nice.

Oh yeah 15 week lead times too. Lol. Want a shed...you might get it in October.

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[riser4]

Looking for a shed for the yard. Lol prices doubled since last year. R11 build materials. 10x10 no frills shed devliered for $4k. Lol I'll wait. It's not necessary but would be nice.

Oh yeah 15 week lead times too. Lol. Want a shed...you might get it in October.

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Ya, wishing I didn't put it off last year, I need same. Maybe in a few years.

[old goat]

That's what is going to take care of the supply shortage and price inflation--people waiting for the price to go down.

[BCMtnHound]

Works in a small or relatively closed market, but now? I think these pains are with us for awhile, or another larger stressor takes precedence.
And I really really want to rebuild my fence on two property lines. But nope, not until the price drops by at least 25%. Its like a game of chicken right now.

[old goat]

Works in a small or relatively closed market, but now? I think these pains are with us for awhile, or another larger stressor takes precedence.
And I really really want to rebuild my fence on two property lines. But nope, not until the price drops by at least 25%. Its like a game of chicken right now.

As a highly qualified internet dental economist I predict resolving supply shortages will take at least a year and quite possibly more, and that's assuming no more boats get stuck-- a while indeed. We all should be hoping nothing breaks.
BTW too bad you're in Canada--I have some excellent redwood fencing I could have sold you.

[neufox47]

FYI. If you’re underinsured by 80% or more the carrier can reduce payouts.

If you’re 50% insured a $20k claim might only pay 10k

Not sure how often they do that. But they have the right.

That isn’t how co-insurance works. If your policy has 80% co-insurance the policy limit can be up to 80% of the actual value of the property before you are underinsured. If your policy limit is less than 80% of the actual value the payout is reduced by the amount of the loss multiplied by the ratio of the limit of insurance divided by the amount of insurance required (the actual value of the property multiplied by the coinsurance percentage). 80% is common but can change from policy to policy. A lower co-insurance value is better than a higher one for the policy holder. Many policies will wave co-insurance.

If you have a $200k property, a $100k limit, 80% co-insurance and you suffer a $100k loss you will only collect $62,500; ignoring your deductible. If you have a $2,500 deductible you’d collect $60,000.

Co-insurance for business income is trickier. It’s based on the revenue you would have earned less cost of goods sold and only certain expenses (which are listed). This typically results in a business needing to purchase a higher limit than they would ever plausibly lose. This is especially true if they purchased ordinary payroll coverage as the equation will assume you will continue to pay your employees for the entire year while shut down.

Moral of the story for you business owners, send an email to your broker with your P&L and ask them to review your limits including your business income. Save their response, just in case.

[gravitylover]

We all should be hoping nothing breaks.
BTW too bad you're in Canada--I have some excellent redwood fencing I could have sold you.

Too bad you're 3k miles away, I could use a load of redwood like that.


I read an article the other day that said pallet prices are up 400% and rising. Turnaround times on pallet orders are 8-12 months and some companies won't even take orders anymore. This is screwing up shipping domestically and has the potential to shut down a few things so pallets can keep heading towards food production and distribution first and foremost.

[gravitylover]

Oh and then there's the box shortage. Another looming disaster...

[ötzi]

On the bright side, I just got back and the weed store was fully stocked.

[XXX-er]

https://www.reddeeradvocate.com/busi...umber-imports/

great time for a trade war eh !

[Mazderati]

Big Wood gunning for some of that Big Sugar protection.

[dunfree]

Too bad you're 3k miles away, I could use a load of redwood like that.


I read an article the other day that said pallet prices are up 400% and rising. Turnaround times on pallet orders are 8-12 months and some companies won't even take orders anymore. This is screwing up shipping domestically and has the potential to shut down a few things so pallets can keep heading towards food production and distribution first and foremost.

that’s because there’s a shortage of workers to make pallets because anyone who can swing a hammer (nail gun) fast enough to make money in a piece work industry has fucked off to far better paying hammer swinging.

[old goat]

Instead of people making furniture out of pallets (a lot of Asian made pallets use some attractive although low grade lumber) maybe people should be making pallets out of furniture.