A logistics firm is warning that the continuing shipping container shortage is having a serious impact on international supply chains and that UK-based retailers and manufacturers to order early to avoid delays.
SHD Logistics magazine reports that the container shortage has been due to a perfect storm of the rise in the demand for online goods during the pandemic, combined with unprecedented volumes of PPE and medical supplies passing through the world’s ports.
There has also been a decrease in container production because of the pandemic, as well as delays to ships transporting goods from Asia due to COVID-19
The shortage has means that shipping prices are at near-record highs, and the cost of shipping goods from China to Northern Europe almost quadrupling doing 2020.
Charlie Walker, head of marketing at Walker Logistics said: “The container crisis is increasing the pressure on British retailers and manufacturers at a time when businesses are already having to contend with the impact of Brexit and the pandemic on their profitability.
“Many internet retailers are understood to be running out of stock of certain items while manufacturing firms have reported delays in production as a result of the difficulty of getting vital component parts from Asia.”
He is advising businesses that import products from Asia to place orders for subsequent consignments much earlier than usual, to help avoid critical stock shortages.
“The pandemic has resulted in an unusually high demand for goods ordered online. With the logistical bottlenecks affecting imports of products or components from the Far East unlikely to ease until Covid vaccines have been rolled out across the world, UK businesses have to reassess their purchasing strategy,” Walker added.
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