It’s no secret that the global supply chain is in chaos and has been for months. Thousands of shipping containers are gridlocked at both the Long Beach and Los Angeles ports. The crisis started during the initial Covid-19 outbreak and has since worsened, creating holiday shipping delays.
The jam is attributed to a perfect storm of contributing factors. First, there was a back order of goods after Asian factories shut down during the initial Covid-19 outbreak. Once shipping resumed, ports were swamped with deliveries and faced major labor shortages due to the pandemic. Experts believe the problems at the ports could last for years— causing some big box retailers to take matters into their own hands.
Costco has chartered three cargo ships to transport goods from Asia to North America. The retail giant said the cargo ships will be chartered for the next year and each load will carry 800-1000 shipping containers per load. The ships will make at least 10 deliveries. The company is hoping to get ahead of the holiday surge by stocking up on toys, consumer goods, and other hot holiday items.
Other retailers, like Home Depot, have also chartered ships.
“We have a ship that’s solely going to be ours and it’s just going to go back and forth with 100% dedicated to Home Depot,” President and Chief Operating Officer Ted Decker told CNBC.
Other major retailers like IKEA, Target, and Walmart are also chartering their own cargo ships.
This move will hopefully keep shelves stocked during the holiday season, but it will come at a cost. Increased shipping costs combined with a shortage of seasonal workers will most likely mean higher costs for end consumers. Experts say the best way to shop this Christmas is to hit the stores early and try to wrap up shopping before Black Friday to avoid holiday shipping delays.
Why Are There Still Global Shipping Delays?
Since the pandemic and its effects continue, there hasn’t been a chance for the shipping industry to recover. Instead, the status of shipping is progressively worsening. In fact, experts believe the problems at the ports could last for years— causing some big box retailers to take matters into their own hands.
How Do Global Shipping Issues Affect Consumers?
The decision for big box retailers to charter their own cargo ships will hopefully keep shelves stocked during the holiday season, but it will come at a cost. Increased shipping costs combined with a shortage of seasonal workers will most likely mean higher costs for end consumers. Experts say the best way to shop this Christmas to minimize the effects of holiday shipping delays is to hit the stores early and try to wrap up holiday shopping before Black Friday.
FAQs
Why are there international shipping delays?
International shipping delays are caused by a variety of factors that are the main effects of the COVID-19 pandemic.
When will shipping delays stop?
There’s no clear time for global shipping delays to stop. The effects of the current crisis have lingered for a while and could continue for years.
How can I avoid shipping delays?
There is no way to completely guarantee that you avoid all global shipping delays, but you can pre-order items and shop early. Experts recommend finishing Christmas shopping before Black Friday to account for likely holiday shipping delays for gifts purchased online.
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