- the shipping crisis is getting worse, here’s what that means for holiday shopping
- the pressures on global supply chains have not eased
- massively increasing the cost of moving cargo could add to the upward pressure on consumer prices
- the terminal shutdown in Ningbo will add to bottlenecks arising from the closure in June of Yantian
The vast network of ports, container vessels, and trucking companies that move goods worldwide is badly tangled, and the cost of shipping is skyrocketing. That’s troubling news for retailers and holiday shoppers says an article on CNN.
Supply getting disrupted
More than 18 months into the pandemic, the disruption to global supply chains is getting worse, spurring shortages of consumer products and making it more expensive for companies to ship goods where they’re needed.
New problems
Unresolved snags, and the emergence of new problems including the Delta variant, mean shoppers are likely to face higher prices and fewer choices this holiday season. Companies such as Adidas (ADDDF), Crocs (CROX), and Hasbro (HAS) are already warning of disruptions as they prepare for the crucial year-end period.
Terminal shut
The latest obstacle is in China, where a terminal at the Ningbo-Zhoushan Port south of Shanghai has been shut since August 11 after a dock worker tested positive for Covid-19. Major international shipping lines, including Maersk (AMKBY), Hapag-Lloyd (HPGLY), and CMA CGM have adjusted schedules to avoid the port and are warning customers of delays.
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Source: CNN
