***Update as of July 8, 2021***
Container shipping prices have now quadrupled compared to 2020 as delays are becoming the new norm.
Picture it, hundreds of freight vessels trying to all get into a few open docks at ports closest to you. Unfortunately, that’s what’s happening right now – and it’s been anticipated that shipping delays are even expected to extend into spring and summer!
Delays due to COVID-19 reducing the number of dockworkers and truckers are pushing factory-to-door delivery times to an average of nine weeks compared to four to five. Add in Americans shopping online, spending stimulus checks, rather than traveling or spending disposable income at restaurants, and it only increases the bottlenecking of getting products imported.
It’s not just the travel time increasing either. Ocean freight rates are increasing. For instance, several General Rate Increases in early-mid February were not accepted by the market or mitigated to much lower levels. However, now, price increases range from $50/TEU to $200/per container with applicability from March to April.
FedEx stated that COVID-19 disrupted supply chains globally, and air cargo capacity is extremely constrained. This is causing them to change their service to suspend several services – including their money-back guarantee and services from the Asia Pacific region.
Trucking isn’t any better, either. Trucking volumes, rates, and employment have been climbing since the summer, rebounding rapidly from an early pandemic slump. With high demand from consumers, importers are rushing to replenish inventory, causing capacity in trucking to tighten and driving rates up.
What does this mean for you? Well, without proper planning, it could leave you scrambling to get a new product when your order doesn’t come in on time and, of course, also paying more. This wouldn’t happen with us. Our dedicated team works with you to plan ahead to have your products ahead of time. We also work hand-in-hand with several leading freight services to avoid having the added fear of shipping hiccups.
With a 99.9% on-time delivery rate, we’re here for you. Contact us today to start planning your next program.
