Cole’s experience indicates a range of factors that currently hinder the global supply chain. First, the items were made incorrectly, with coal suppliers blaming electricity rationing in China as the country trying to move away from coal power; Cole’s acquaintances in China then could not find a cargo ship to fulfill the order. Cole believed his two 40-foot shipping containers would be loaded on a ship near Shenzhen on November 13, but the items did not arrive at sea until November 19. -The day trip between Shenzhen and Sydney, but they have added three more days, ”Cole said. He is not sure if the items will still end up on the coast, and there is no guarantee that the Australian team will be smooth either. “It’s usually a two-day shift to bring the goods from the port to the warehouse, but I have no confidence at all,” he said.
The inability to properly trace orders is a problem across the shipping supply chain, Levinson says, and it exacerbates a wide range of problems. “Most shipments moving through the freight system have no real-time traceability,” he said. “So things are scattered in four winds and things are lost.” That uncertainty has been exacerbated by the last-minute closure of the port due to the Kovid outbreak, which has severely disrupted supply chains over the past year – as in Ningbo. The third busiest port in the world, in August 2021-For the temporary blockade of the Suez Canal in March 2021, leaving 12 percent of all global trade. China too Its 20 largest cities and provinces have demanded lower energy costs Attempts are made to meet environmental targets during the rest of the year, leaving factories and industries working for only a fraction of the day.
The result? The global slowdown in the supply chain has thrown everything into disarray — and shipping items around the world are more expensive than ever. “The shipping economy is great for the ship line,” Levinson said. “They’re making record profits.” Although shipping rates have long been unbalanced, the cost has increased across the board, including the high cost of sending a shipping container from Asia to Europe compared to Europe. Shipping a single 40-foot container from Shanghai to Los Angeles in early August 2019, for example, cost 1,700. A year later, it rose to 3,000. As of August 2021, it is priced at $ 10,200, according to data tracked by analyst firm Drury World Container Index. Cole had previously paid about $ 2,500 to ship a single 20-foot container from China to Australia. Now it’s 5,500. “I get a little worried when I see bills for my 40-foot containers,” he said. I can’t get the bill until the container arrives at the port.
At such a high price, many big businesses are avoiding the traditional shipping industry and going it alone, making it seem more profitable to do so. There is Costco Chartered three container ships Which will work to supply products from Asian manufacturing facilities to the United States and Canada, Such as Walmart, Ikea and Home Depot. “There are a lot of reasons for inflation,” Costco’s chief financial officer Richard Galanti told investors as the company announced its latest financial results. “High labor costs, high freight costs, high shipping demand, and port delays, increased demand in certain commodity segments, various shortages of everything from computer chips to oil and chemicals, and high commodity prices” have all affected the retailer’s business, he added. Those who have not chartered their own ship are feeling the effects. Underwear retailer Victoria’s Secret is half the product Stuck in the sea. The rest is being taken away — but it is now taking two days or nine days, because the race to stop the supply flight is creating a backlog there as well.