caroline: i'm caroline hyde. romaine: i'm romaine bostick. taylor: i'm taylor riggs. romaine: same supply chain issues, conveys around the world turned to fight bottlenecks we have been talking about in the supply chain globally, in the u.s. rising backlogs, europe rising to unprecedented levels. in asia, being compounded by one of the world's worst covid

outbreaks. we are going to dig into those disruptions and in particular how the trucking industry is handling them we want to start with the new round of data which painted a picture. taylor: we have broken out by some individual countries because it is telling us a very interesting story. all below 50 which we know is the dividing line between expansion and contraction. vietnam, malaysia, thailand, philippines. south korea and taiwan, those pmi's remain over, watch production in semis and autos so we did get the china that sector and manufacturing dipped below 50 to 42. you are seeing some effects of the slowdown. all of this and more with our economy reporter olivia roffman. what can you drop -- gleaned from the data overnight in asia and in the u.s.?

>> these struggles with covid continue to constrain supply chains. in asia we have the delta variant picking up, lockdowns which is disrupting shipping and production, and that is in the u.s. as well. caroline: when you dig in, there was a stronger number coming out of end vectoring in the u.s., it did show an issue with -- the reliable logistics being a hindrance. do you know how much it is hampering even those that are growing? >> it seems like the ability to get our--parts is the problem. in the u.s. it is a record. 91 days. we are seeing in l.a. the backlog of that record as well and so while employment is a problem, so is the inventory.

romaine: what is the endgame? we talked to economists and other folks out there, we built this whole supply chain and we use to before the pandemic and the trade war, the idea that we could all be interconnected around the globe. there was never much of a disruption save for a few weather events. we are now two years into this pandemic, the trade war proceeded that, it has been a long time coming. people talking about significant changes in how our supply chain looks long-term, or are we going to try to revert back to the old model? >> there was a sentiment earlier this year that it was expected to iron out before the third quarter. we heard from timothy today that he sees this as something that manufacturers are going to have to continue to deal with and

adapt around rather than going away complete. caroline: thank you for bringing us the inside track when it comes to supply chain issues we are seeing in the data. we will dig into issues hitting the trucking industry with the ceo of freightwaves, craig fuller. also breaking news is a comes across the wire, as we head across all of our conversations regarding supply chains, we will include the deck up plan pending miter -- minor changes. of course the drugs that were issued for the party's, the bankruptcy plan is pending miter changes, and the fda's data for covid-19. when we come back. ♪

romaine: kinks in the global supply chain, may be an understatement. the disruptions are continuing and we want to take a look at the trucking industry, shortages, disruptions, limited driver availability all pushed costs to a record. that is the cost. caroline: extraordinary when it comes to how much -- romaine: if you are a purchasing manager you are looking at this. caroline: shipping around the s, tried to get the right products in the light -- right store -- u.s., trying to get the right products in the right store. there is price pressure we are seeing, and how we could use some of these witches go issues, craig fuller is with us about

the ceo and founder of freightwaves which works in the logistics industry, a division of u.s. express enterprises, the largest provider of on-demand trucking services. you are a veteran of this industry. how bit -- that is it? does it feel unprecedented? craig: and is certainly unprecedented and bad depends on what perspective you're talking about. if you are a carrier you are doing well, record high pricing of authority in the ability to essentially ask for what ever it costs to move the fray. if you are a shipper you are struggling with getting capacity and getting access capacity at a protectable rate. everyone is ultimately struggling but some are doing well and you see record profits while others are struggling to find capacity to fit your goods.

taylor: we love the headline of so the latest columns you've written talking about we need pain in order to grow in today's chaos, it might be good that it will usher in investment in new technology. what do you see as the changes we can learn given the chaos we are in right now? craig: we are seeing significant amount of venture capital investors going into supply chains tracking automation, so everyone is making significant investments in supply chain. last year companies had a robust supply chain and were making investments did exceptionally well. and they did well because they had the supply chain infrastructure and could respond to demand. and those that did not come on the retailers of the most pronounced because they are the most obvious in terms of having a robust supply chain versus ones that don't, and that is

what we are seeing. we are seeing investments continue. this morning on martin announced they were adding -- walmart announced they were adding significant human resources to their supply chain infrastructure. i think this is going to continue and we are never going to go back to pre-covid thinking about how supply chain is optional. romaine: it's a great point, but i'm curious how much innovation is being targeted toward this industry and how much can be targeted what is the innovation gap are now? craig: we are in the early stage of venture capital, the technology started in 2017, about $4 million was invested in supply chain technology back in 15. hopefully by the end of the year, we expected to be about $10 billion in venture capital toward early stage supply chain technologies.

i like to use the analogy of fintech. you think about it got its start around 2000 five and took off during the financial crisis of 2008. supply chains crisis has been covid and we are seeing a significant inflection point in venture capital that will automate a lot of the challenges. but automating payments or financial services is much easier than automating physical goods because it requires so many parties and is easy to digitize. caroline: paint the future for us. years back we were getting excited about electric vehicles, autopilot, thinking about how they are going to be more eco-friendly. there was talk about one day we won't need truckers and the largest labor force in the u.s., they are going to be automated in some way. is that where it is out?

what are the most exciting things you are seeing developed? craig: i think that is long-term, we are at least a decade out before we see that. the media got really excited with the idea of self driving trucks, a lot of venture capitalists piled on it. but the reality is to go from point to point, even if the technology is ready, and it is probably ready within the next couple of years, we don't have regulation. we don't even have rules whether a driver has to be in the truck. it is still a decade before we see point to point. most of the investments that make sense short-term is in visibility and trying to know where your desk the good thing about autonomous is whether or not they are driving the truck, the investment are making the truck savor, collision avoidance systems are making it safer and

those technologies make the industry more efficient. but we don't expect to see point-to-point autonomous for a decade, but we will see investments that are more short-term and will deliver a quicker return on investment for companies. taylor: what is also interesting is as we take a look at the disruption covid has caused, it is not just one kink in the chain. you could point to multiple issues, whether it be the factor viii that gets covid and has to shut down overseas and then waiting to get into the port and then once you are at the port you can't get the driver to carry it to the store. so where do you see the biggest issues but have the most chance of easing up anytime soon? or is it connected? craig: it is all connected, that's the reality. it's fragmented, you have millions of participants. in terms of a container, think about how many parties touch a

shipment from a factory in china to the united states. just in there are 11 from parties that could be involved from the warehouse to the destination and internationally it is larger and more multiple. you have all of the systems that if one fell along that chain, ultimately all of them are disrupted and that is what we are seeing. we are seeing unprecedented amounts of freight demand because the economy is on fire. there is so much demand for stuff, inventories are out and unlike other commodities, the thing that is not understood about freight is you can't put time in a bottle. you can store oil or not drill for it, you can keep longer -- don't condone the trees, keep it in storage. can't keep freight, and that is ultimately an amount of time it takes to move a product. whether it is a port shutting down in china, disruptions because we don't have capacity for trucking, we don't have air

capacity, whatever is disrupting, that time we never recover. we get further and further backed up and that is what we are seeing now. what we are expecting is let's take the hurricane, it is a big event that will have some short-term impact in terms of capacity, we expect next week that the ports on the west coast will start getting record all humans yet again. china has recently turned back one of their ports, but we expect it to be a big deal for next year. we don't see a short-term resolution. and we haven't even talked about the infrastructure bill. that is the biggest conversation not enough people are having because not only will it create record manufacturing demand, but it will also take labor away from those proper jobs. taylor: we are short on time today, that is a conversation we

will make sure to have you back for another day. certainly need to devote more time to that. craig fuller, ceo and founder of freightwaves, we appreciate your time and interesting conversation. coming up, the labor shortage and what has nailed the trucking world, causing lots of new waves to attract. female drivers. this is bloomberg. ♪

romaine: more given to a pressure on alphabet, google, the department of justice has a google antitrust lawsuit over its ad tech is this. there was a separate lawsuit already, the justice department accelerating this investigation into googles digital advertising practices and may file a lawsuit

by the end of the year. we should point out this is based on bloomberg reporting, people in the situation declined to be named. let's get back to the topic at hand for the show which is supply chain issues. supply chain industry and particular, trucking. with the pandemic, demand for trucking has increased come along staffed by male drivers but now they are looking for, get this, women. caroline: i could not drive an enormous truck, that is discipline, time away from the home, family issues but 6% of drivers are female. there is such a demand for truckers and such pay increases but people are trying to view -- change the way you view trucking, trying to make almost story books about women in this capacity. and how women and male driving

teams, maybe a family could engage in this because that is the issue. taylor: and the practical matter that there is a labor shortage. how do you encourage anybody to get in this business? why don't we ask someone who can dive in and answer, our bloomberg opinion columnist carl smith joining us. talk about how bad you see this shortage and what some of the solutions may be. carl: right, so even before the pandemic started, they estimated they have a shortage of about 60,000 workers coming into 2020. even at that point they projected the gap would rise to about hundred thousand by 2023. what seems like it has happened in the pandemic is it has accelerated the process. now we are probably seeing a gap somewhere around 100,000, still

growing. we even see that despite the fact that we had a huge drop-off in trucking employment when the pandemic first hit, unlike most industries there was no bounce back affect at all. growing now even slower than it did before the pandemic started. there are a couple of things. the trucking industry itself has asked for special immigration pathways truckers from africa and asia to move into the u.s.. that might do a little bit. i think the estimates have it as several thousand truckers year, probably not enough to close the gap. and at least in my column, i talk about the fact that this message is already getting into a sensitive issue in american pollen does politics and it is getting at an angle that blames people because you have industry

-- politics and it is getting at an angle that blames people because you have the industry blaming employees rather than raising productivity on its own. trucking analysts have known this for a long time, but increased automation and how trucks are dispatched and eventually, this has been a hard slog but getting to where there is some portion of the drive that is automated, even if the truckers are in the truck but the truck can drive itself and the trucker can do paperwork or other white-collar type work so they open up trucking to people who might not just want to sit behind the wheel for days on end. caroline: you are a man who understands policy, having helped with federal policy. it gets a little look about the infrastructure bill and we left the conversation with craig fuller of freightwaves, talking about how everyone needs to discuss infrastructure.

the infrastructure package has a bit to get female drivers involved in that is what part of the story was about, getting new types of drivers. but what about the infrastructure in terms of technology, making the drop of a driverless arduous? karl: i think that is really going to be the only thing that is going to make a difference. we may have to think radically different about how we do this, especially as trucking is increasing and as we are trying to move toward automation. maybe even special toll sections that apply to trucks only so they can be automated while keeping people safe. in terms of bringing other people in, i think it is a great idea. there is a proposal to lower the driving age, which i think is good. all truckers have to be rigorously certified, the main

reason they raised the age before was to lower competition for incumbent workers before there was a shortage so there is no reason not to lower it again. taylor: really appreciate it, bloomberg opinion columnist karl smith giving us guidance on the labor shortage, you were mentioning what to do to get more people, women in the industry at here is a new one when you think you could not get more, we are going to give you more. amazon recruits pot smokers. if you test people for their want you are drilling a lot of people out in this is a way to get more candidates. you tell me. romaine: i mean, it is in the headline makes it seem more sensational. i think it is a general idea that companies have always had drug testing and other things

that they felt tried to weed out people they felt were undesirable, people who've maybe had drug use issues or even ex-cons. you have seen a lot of companies often those stanzas -- soften those stances. not everyone who smokes marijuana is going to be a bad hire and not everyone who is in con is a bad hire. they are starting to figure out the a woman can drive a truck, people who are not in these traditional industries can do these jobs but you have to be a manager. caroline: you have to be thoughtful, not get on your predispositions. romaine: nobody can do the job that we do. caroline: [laughter] don't go offering the net too wide, bankers. but maybe they think they can increase assets by 400% if they managed to just -- romaine: without getting to the

social issues, we know it is something that is more common than people let on. taylor: particularly since it's becoming more legal in some of the states. if alcohol is legal, how are we thinking about this? this is a debate that will continue off-line, bloomberg technology is next. this is bloomberg. ♪

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