Why are shipments being delayed?

Why are shipments being delayed?

Global supply chains are still recovering from the whiplash caused by the city lockdowns governments imposed in 2020 to contain COVID-19. Initially, lockdowns in China shuttered factories, which stalled much of the supply side in global shipping.

What is causing shortage of shipping containers?

The container shortage began during the early days of the coronavirus. Shortly after the WHO declared COVID-19 to be a pandemic and manufacturers shuttered factories in response, many containers normally used to ship manufactured goods stopped moving.

How long will the shipping container shortage last?

Long story short, supply chain disruptions may be the new normal for at least the next six to 12 months. This will cause logistics companies all sorts of headaches, but it could end up being very profitable for investors.

Why is sea freight taking so long?

Shipping LCL takes more time since pallets from multiple places need to be grouped to fill the container and get it on the ship. FCL goods are already loaded into the container and ready to be loaded onto the vessel. Occasionally, China has crackdowns at their ports which can delay departure up to a week.

Why does Sea freight Increase 2021?

What triggered the spike in freight rates and costs? Demand for goods surged in the second half of 2020 and into 2021, as consumers spent their money on goods rather than services during pandemic lockdowns and restrictions, according to the report.

Why is 2022 shipping slow?

Global supply chain disruption and shortages caused by the Covid pandemic are set to continue well into 2022, according to a report. Digital supply chain experts project44 say average delays on shipping from China to Europe rose to 6 days in December, after falling for months.