Over one year into the coronavirus pandemic and we started to see things getting back to normal in many parts of the world. At least we started to. But then an out break from the southern region of China led to more problems at the ports and possible product price increases.
The global supply chain continues to be impacted by the Covid outbreak causing prolonged replenishment times, decreased freight capacity, and product price increase across a variety of categories. The decreased freight capacity is one of the biggest setbacks we have yet to see. To expand, a normal container coming from China going to the East Coast would usually cost $3,000 dollars. Now, that same shipment would cost $9,000 dollars.
Even at this heightened price, there is no guarantee of regular, on time, sailing dates. Therefore, suppliers are being forced to use premium freight which is an increase of at least 35%.