If there is one thing in the headlines this year, it’s the impact on supply chains that the shipping delays are having. Shoppers will be experiencing something brand new this year, in that the gifts being ordered from overseas are being delayed due to the pandemic. There are whole sectors of goods that are difficult to get hold of this year, and the demand is exceeding the capacity for production.
With huge delays in the supply chain, the shipping services and carrier delays are in need of an overhaul. This makes for a particular difficulty in customers getting their hands on the merchandise in the first place. Merchants have to spend a lot of time being prepared for spikes in order volume.
Issues for the Holidays
One of the biggest looming issues is that supply chain delays are occurring right now. There were big issues in the supply chain last year, but in 2021 there are items in production but the delays have meant that there are further delays in scaling up production to meet the consumer demand.
This means that the demand is growing at a much faster rate compared to what can be produced. The extensive delays in high-demand shopping items for the upcoming holidays mean that supply chains are being pressured by the delays in shipping. The consumer response to supply chain difficulties has led most consumers to bulk-buy for the holidays.
Effects on the Economy
The disruption in shipping has been one of the biggest causes of inflation this year. The information out there in the world for global manufacturing is showing that the delivery delays are the most severe that they’ve ever been.
This is going right back 25 years; the impact of the pandemic and every other delay this year is severe and it doesn’t look to be changing any time soon. The situation is causing the shipping prices to rise dramatically, with fully loaded shipping containers forced to wait in ports around the US.
There are idle containers sitting for up to three months at a time, which is proving to be a big problem in areas that are awaiting deliveries. Due to the delays, freight rates have spiked and they are more expensive than ever before. Containers are costing as much as $30,000 each, where pre-pandemic they would sit in the $1,500 range.
The supply chains have been hugely impacted by shipping, as they are unable to continue to produce products that aren’t going to be shipped anywhere. With the delays being so huge, supply chains are unable to sell the products that have been created, and this causes issues for the consumer, too.
Supply chains are dealing with unprecedented levels of pressure that cause a huge knock-on effect for your customers. Shipping delays are going to take some time to work out, and once they do, the hope is that supply chains will be able to continue to get products out there into the stores for customers to enjoy.
With the right help from business consulting services in Georgia, you can get the help you need with your supply chain needs.