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Buyers have warned to ‘order Christmas gifts now’ over supply chain issues

UPS has warned of supply issues as Christmas approaches, due to the ripple effect of Covid-19 and low global vaccination rates in developing countries.

“The logistics industry does not view 2022 as having less disruption in supply chains than in 2021,” Scott Price, president of the multinational US shipping company, told AP on Sunday.

Transportation companies have struggled to cope with demands for deliveries during the pandemic, due to labor disruptions, factory closures and bottlenecks at ports caused by Covid.

According to freight tracking company Freightos, container costs between China and the United States soared to $ 20,000 last year, from just $ 4,000 a year ago, as prices between countries increased by 500% year on year.

Soaring shipping costs are expected to push up the prices of goods, ranging from groceries and big-ticket items made in China, to raw materials and building materials.

“I say to people half-jokingly ‘Order your Christmas presents now, otherwise on Christmas day there might just be a photo of something that won’t happen until February or March,” he said. said Price.

Container slots are overbooked and this creates a bidding war. Suppliers must choose between running out of stock on certain items or paying the inflated costs and passing the additional charges on to the consumer.

“Global Commerce is the hottest restaurant in town right now,” said Brian Bourke, growth manager for freight company Seko Logistics.The Wall Street Journal. “If you want to get a reservation, you have to plan it two months in advance. Everyone is trying to take any place and they are all defended. “

Companies like Amazon pay exorbitant shipping costs, according to consultant Zhu Guojin of Chinese company Jizhi Supply Chain Service Yiwu Co: “Last year, many customers delayed shipping in hopes that the cost could to lower. But that’s no longer the case, ”Mr. Guojin said. “Most don’t seem to care about prices anymore.”

The arrears are expected to continue until 2022, as there is usually a Chinese New Year break in February.

The Independent Gt

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