If we still have shipping delays, why are shippers making more money than they have in 13 years? Supply chain expert Margaret Kidd of the University of Houston says the slow down is partially caused by the increased demand. "In this Covid Era - we saw e-commerce grow almost 50%. That is putting tremendous strain on the system." Also, the Covid spread in Viet Nam and other manufacturing countries is closing plants that create essential shipping elements. More demand brings higher income, as shipping strains slow down the process.
Shipping containers Full of Chinese Goods Clogging American Ports
Says Kidd, "We're seeing shipping delays because of a shortage of chassis, a shortage of drivers and a shortage of workers across the supply chain in every aspect. Until we get this Covid curve flattened in some of these manufacturing countries, we're going to continue to see outbreaks in supply chain - especially in countries with manufacturing facilities." She says when the demand is high and the supply is low prices will rise.
photo:GettyImage
Slow down in cargo shippingPhoto: Getty Images