Supply Chain Shocks: Ocean Shipping Challenges Abound marinelink.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from marinelink.com Daily Mail and Mail on Sunday newspapers.
Cargo transport, shipping, and freight costs for returning home expatriates that have gone ballistic, thus adding to the pain of the departure. Significant numbers of freight forwarders, shipping, and logistics agencies have made media statements blaming several issues for the rise in container transport costs. Now any one of these could be argued as a .
Cargo transport, shipping, and freight costs for returning home expatriates that have gone ballistic, thus adding to the pain of the departure. Significant numbers of freight forwarders, shipping, and logistics agencies have made media statements blaming several issues for the rise in container transport costs. Now any one of these could be argued as a.
Synopsis
The higher shipping costs have been sparked by a combination of factors, including soaring demand amid stimulus checks, saturated ports, and too few ships, dockworkers and truckers.
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Spot container rates from Asia jumped in 2020 and have stayed elevated.
Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers.
The price for a container of goods from China to the U.S. West Coast and European ports has hovered near record highs for several months, and conditions are ripe for more increases even though spot rates usually soften this time of year. What’s more, new contracts being signed by some of the biggest U.S. importers indicate the spike won’t be a short-term blip.
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By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers.
The price for a container of goods from China to the U.S. West Coast and European ports has hovered near record highs for several months, and conditions are ripe for more increases even though spot rates usually soften this time of year. What’s more, new contracts being signed by some of the biggest U.S. importers indicate the spike won’t be a short-term blip.
Most large retailers and manufacturers sign annual deals with the ocean carriers to lock in their container freight rates, in private negotiations that typically take place this time each year.