Disruption at the Border; Shoppers are Still Hoarding; Europe Chipping In

Trucker-led anti-vaccine protests are disrupting the biggest border crossing for U.S.-Canada trade. Protesters halted traffic on the Ambassador Bridge, a 1.6-mile corridor that connects Detroit with Windsor, Ontario, for a time late Monday night, and the WSJ’s Paul Vieira and Jacquie McNish report that traffic remained reduced after Canadian authorities cleared the major north-south thoroughfare leading to the bridge. Much of the focus in Canada and globally has been on a protest in Ottawa that is in its second week. Now, similar disruptions threaten to impose a chokehold on key U.S.-Canada trade routes as protesters seek to “hit them in the pocketbook,” as one participant put it. A group of truckers had earlier blocked a border crossing in western Canada. The head of the Toronto-based Automotive Parts Manufacturers Association says longer-term disruptions at the Ambassador Bridge could upend auto plant delivery schedules and trigger manufacturers’ contingency plans.

Stocking Up

Sales at bulk retailers like Sam's Club are far ahead of other retail outlets. PHOTO: RACHEL WISNIEWSKI for THE WALL STREET JOURNAL

Americans may be weary of the pandemic but they’re not done stockpiling. Predictions that the bulk buying of the early days of the pandemic would subside are being buried under stacked up boxes of Kraft Macaroni & Cheese and 40-pound bags of rice. The WSJ’s Lisa Bannon reports that consumers are continuing to hoard food and household goods as many stay at home and remain uncertain about product availability. Research firm IRI says sales at bulk retailers including Costco Wholesale and Sam’s Club rose 26.6% in dollars and 18% by volume during the fourth quarter of 2021 from two years ago, far greater than other types of retail. Product shortages at stores aren’t as severe as 2020 but figures show stock-outs have gotten worse during the Omicron outbreak. Consumers remain wary of running out even if the stockpiling itself is contributing to stock-outs on the shelves.

Supply-Chain Strategies

Semiconductor company Soitec's factory in France

The European Union is stepping up its bid for a bigger slice of semiconductor supply chains. A new plan would unleash about $49 billion in public and private funding for research and new chip production, the WSJ’s Kim Mackrael and Daniel Michaels report, part of the bloc’s broad effort to boost its commercial independence in a key manufacturing business. The proposal is the latest effort to reset supply chains in a semiconductor sector marked by shortages that have hamstrung operations in key industries. Europe’s plan would also give regulators power to demand that companies prioritize specific products where there is a shortage. The U.S. and China are both putting big funding behind semiconductor manufacturing in what has become a global race for chip production. Europe is an important supplier of materials and semiconductor machinery but is well behind Asia and the U.S. in fabricating most kinds of chips.

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