Global supply chains have never been this delayed and expensive
Shipping costs have never been this high. This is due to multiple variables: including shortages of consumer products, equipment and other unresolved problems from the beginning of the Covid-19 pandemic, and now, complications with the Delta variant.
“The biggest price jump was along the route from Shanghai to Rotterdam in the Netherlands, with the cost of a 40-foot container soaring 659% to $13,698.” Closer to home, costs on routes from Asia to North America’s west coast have jumped 360%.
Retailers across North America are bracing for high and increasing rates. Among companies re-shoring or near-shoring, Steve Madden Shoes has moved 50% of its production to Mexico and Brazil to mitigate these increases.
What it means for you: The Consumer
“For consumers, the supply chain crunch is likely to mean higher prices. Hasbro, for example, is increasing prices to offset rising freight and commodities costs. The company is projecting that its ocean freight expenses will be on average 4 four times higher this year than last, according to chief financial officer Deborah Thomas.
Shoppers should also brace for longer than normal delivery times and may need to have several different gift ideas up their sleeves.”