According to Drewry’s World Container Index, shipping prices this past week began to stagnate with a marginal drop of 0.4%. Many of the most popular routes around the world like Shanghai to Rotterdam and Shanghai to Los Angeles remained effectively the same as compared to the previous week. Meanwhile, rates on New York to Rotterdam and Los Angeles to Shanghai rose 3% and 1% respectively. Other routes like Shanghai to New York, Rotterdam to New York, Rotterdam to Shanghai, and Shanghai to Genoa all saw slight decreases of 1%.
An article from CNBC recently shared that some economists and business leaders expect that shipping problems are likely to extend well into the coming year, 2022. According to economists from Goldman Sachs, around 77 ships are waiting outside the ports of Los Angeles and Long Beach, equating to around $24 billion in goods. Due to the ever-growing backlogs, prices of consumer goods continue to skyrocket and many are expected fewer goods to be available during the holiday season. Goldman economist Ronnie Walker said, “Backlogs and elevated shipping costs are likely to persist at least through the middle of next year because no immediate solution for the underlying supply-demand imbalance at US Ports is available.”
Adding to the overall crisis, empty containers continue to pile up at the Port of Los Angeles, meanwhile, Chinese companies are experiencing a large shortage. With a lack of empty containers, many companies in China are having issues actually getting their goods out of the country, further adding to the fears of fewer goods for the holiday season. In an effort to alleviate some of the supply chain issues, Governor of California, Gavin Newsom signed an Executive Order which mandates that state agencies continue to work with the Biden-Harris Administration Supply Chain Disruption Task Force and to identify state-owned properties or other locations that could serve as short-term storage once goods are unloaded from ships. Despite all of these efforts, the end of this shipping disaster still does not seem to be near.
An article from CNBC recently shared that some economists and business leaders expect that shipping problems are likely to extend well into the coming year, 2022. According to economists from Goldman Sachs, around 77 ships are waiting outside the ports of Los Angeles and Long Beach, equating to around $24 billion in goods. Due to the ever-growing backlogs, prices of consumer goods continue to skyrocket and many are expected fewer goods to be available during the holiday season. Goldman economist Ronnie Walker said, “Backlogs and elevated shipping costs are likely to persist at least through the middle of next year because no immediate solution for the underlying supply-demand imbalance at US Ports is available.”
Adding to the overall crisis, empty containers continue to pile up at the Port of Los Angeles, meanwhile, Chinese companies are experiencing a large shortage. With a lack of empty containers, many companies in China are having issues actually getting their goods out of the country, further adding to the fears of fewer goods for the holiday season. In an effort to alleviate some of the supply chain issues, Governor of California, Gavin Newsom signed an Executive Order which mandates that state agencies continue to work with the Biden-Harris Administration Supply Chain Disruption Task Force and to identify state-owned properties or other locations that could serve as short-term storage once goods are unloaded from ships. Despite all of these efforts, the end of this shipping disaster still does not seem to be near.