SUPPLY CHAIN

I am becomming increasing convinced that the LYC supply chain may be the major culprit of the recent price decline.

As Bona Fidas, I work and live in Los Angeles, CA. USA. I am also an importer of 90% of what we sell. We are a USD32MM company, importing about 800 40' containers a year.

As I write, I can confirm that we have almost 60 container ships sitting off of our bay awaiting unloading. I can also confirm that according to our Customs Broker, we are receiving about 60% of our goods based on their arrival original schedule. We have also taken up to accept shipment laying into Houston, as shipping companies are now denying loads to Los Angeles-Long Beach. The term inter-modal has become a second language to us.

As an example, and based on your ability to find a container, our rates from Italy for a dry 40 footer have gone from 2900 a load to over 9400 for the same shipment. (quoted in USD). China 40 foot dry containers have moved from USD3200 to over USD18,000, ex works to Los Angeles.

If LYC is experiencing similar issues, the SP for LYC is almost fully justified. The higher prices for RE are being offset by they obscene shipping rates ans subsequent delays.

The issue of logistics, coming at a time of possible. economical slow down in the USA and other nations will impact earning all along tbe supply chain. LYC is not immune.

At present my company is reaching 70% filll rates to customers. I cannot think LYC is doing wildely better. This is a reduction of 96% to 70%.

ALL investers should keep an eye in this area of international commerce. I fear the news will only worsen through sumner 2022.

GLTA

Jason