Dark clouds are forming over utility-sector supply chains. Power companies across the country are facing a shortage of transformers and long lead times to get the equipment, just as they are heading into the peak storm season, when critical gear is most at risk of destruction. Utilities say wait times for transformers have quadrupled and are averaging well over a year. That raises the likelihood of prolonged power outages during the hurricane season
If you think the price of groceries or a used car are high, try buying a new crude oil tanker. New building prices have jumped 35% to $119 million last year, but still have a ways to go before reaching their all-time peak of $162.5 million in 2008. Secondhand prices are strong too. Over the last 12 months prices for 5-year-old crude oil tankers are up 23%. The current market is being driven by a combination of strong demand and tight supply.
