It’s no secret that things are a bit more expensive right now than usual. Whether we’re discussing the freshly increased interest rates, inflation, or the rising costs of shipping and goods that are in low supply but high demand, the world is a bit askew and we are certainly still facing the impact of COVID-19 on the world’s operation.
International shipping prices are incredibly high in the year 2022; when supply chains stopped functioning normally in 2020, the after-effects have still been snowballing even two years later. We at Source Consulting LLC wanted to highlight a few different explanations as to why.
Remember When that Shipping Vessel Got Stuck?
2021 may feel like it was forever ago, but if you remember seeing the headlines about the shipping vessel that got stuck in the Suez Canal, you may recall that this blockage stopped importing and exporting from this particular canal for a week. While one week may seem insignificant, this also had a snowball effect on production even to this day.
Shipping Container Shortage
While the pandemic impacted the world, certain countries took different precautions that allowed them to either open early or have to remain shut for a long period of time. Due to the variability of these precautions, operations were very out of whack on a global level. Most notably, China reopened its economy faster than the US and Europe, yet the shipping containers that would ordinarily be in circulation were stuck in the U.S. and Europe as they remained shut.
This one may be a bit of an elephant in the room, but COVID-19 has certainly backed up production in almost every industry you can think of! Quarantine periods have certainly pushed the burden of work to employees in a way that can often be incredibly inefficient. Not to mention, oftentimes when one person is sick, it can spread fairly quickly to others who they spend time with, meaning that an industry’s workforce can be wiped pretty quickly, even if only for a few days. There are also many who have experienced complications or have had to help family members or close friends who have complications, in which case, many have needed more time off work to attend to these health issues.
The Bottom Line
While certain factors in the past few years have led to increased prices in shipping that have yet to stabilize, we at Source know that purchasing and shipping do not have to be expensive, complicated, or frustrating. At Source, we deliver unique and effective purchasing and logistics solutions that save time and money while allowing our clients to focus on their core business success. Our warehouse in Miami allows us to purchase and ship supplies, building materials, durable goods, equipment, retail goods, animal feed, food items, and humanitarian aid to surrounding areas in the Caribbean and South America.
If you are interested in getting a product or quote for shipping, reach out to us today by filling out the form on our website or by calling (843) 352-4280.