Cole’s experience hints at a series of factors currently affecting the global supply chain. First, these products were not manufactured correctly, and Cole’s suppliers blamed China’s attempts to get rid of coal power rationing; then Cole’s contacts in China could not find a cargo ship to complete the order. Cole believes that his two 40-foot containers will be loaded on a ship near Shenzhen on November 13, but these items will not go to sea until November 19. -The voyage between Shenzhen and Sydney was one day, but they added three more days,” Cole said. Even then, he is not sure whether the items will end on shore, nor can it be guaranteed that the Australian side will go well. “Usually. It takes two days of turnaround time from the port to the warehouse, but I have absolutely no confidence,” he said.
Levinson said that the inability to accurately track orders is a problem in the entire shipping supply chain, and it exacerbates wider problems. “Most goods passing through the freight system do not have real-time traceability,” he said. “The old things are scattered in the four winds, and things are gone.” In the past year, due to the Covid outbreak that caused the port to close at the last minute, severe supply chain disruptions have exacerbated this uncertainty-just like what happened in Ningbo. The third busiest port in the world, August 2021——By March 2021, the Suez Canal will be temporarily blocked, and 12% of the world’s trade will pass through the canal.China also Ask its 20 largest cities and provinces to reduce energy consumption In the rest of the year, efforts to achieve environmental goals have resulted in factories and industries working only part of the day.
result? The slowdown of the global supply chain has thrown everything into chaos and has made global transportation of goods more expensive than ever. “The economic benefits of shipping are very good for shipping companies,” Levinson said. “They created record profits.” Although freight rates have been unbalanced for a long time, and the cost of transportation from Asia to Europe is higher than the cost from Europe to Asia, the overall cost has soared. For example, shipping a 40-foot container from Shanghai to Los Angeles in early August 2019 costs US$1,700. A year later, it rose to $3,000. According to data tracked by the analysis company Drewry World Container Index, it will cost $10,200 by August 2021. Cole had previously paid about $2,500 to ship a 20-foot container from China to Australia. It is now $5,500. “When I saw the bill for the 40-foot container, I was a little worried,” he said. “I will not receive a bill until the container arrives at the port.”
At such a high price, many large companies are avoiding the traditional shipping industry and operating on their own, finding it more economical to do so. Costco has Charter three container ships This will help deliver goods from production facilities in Asia to the U.S. and Canada, The same is true for Wal-Mart, IKEA and Home Depot. “Inflation factors abound,” Costco’s Chief Financial Officer Richard Galanti told investors when announcing the company’s recent financial results. “Higher labor costs, higher shipping costs, higher transportation needs and port delays, increased demand for certain product categories, shortages of all kinds from computer chips to petroleum and chemicals, and higher commodity prices.” The retailer’s business has had an impact, Galanti added. Those who have not rented their own boats are feeling the impact. Half of underwear retailer Victoria’s Secret products Trapped at sea. The rest is being transported by air-but now it takes 9 days instead of 2 days, because the race to snap up supply flights is also creating a backlog there.