Shipping – whether it be domestic, international or flammables – is facing many issues during this time. Consumers aren’t getting their goods delivered when they need them, and shipping costs are shooting through the roof. Suppliers are doing their best to keep things flowing as smooth as possible.
Now, what is affecting shipping at all levels? It primarily has to do with the problems and disruptions facing the supply chain. Problems like:
There is a strong correlation between inflation and supply chain disruption, and that trend continues with shipping.
The costs associated with shipping (taxes, fees, rates, etc.) have seen dramatic increases across the board. Companies such as FedEx and UPS have seen their General Interest Rates (GRI) rise to 6.9% annually (which is the largest increase in over a decade for FedEx).
Supply & Demand
As businesses have started bouncing back from the pandemic, demand for products hit huge highs during 2022, which put stress and pressure on suppliers to meet those demands.
With freight and cargo delays due to weather, post pandemic fatigue, lack of product, and more; suppliers have had a hard time getting orders out on schedule.
And with a variety of items and products on backorder, suppliers just weren’t able get orders and goods out on time. All of which caused widespread shipping delays.
The Bright Side
The supply chain has slowly been improving and getting back on track to where it was pre-pandemic. COVID-related restrictions are slowly being lifted across the globe, port turnaround and travel times are improving, and many retailers are seeing more and more inventory coming in.
These shipping issues, such as rising fees, increasing costs, and widespread delays can be frustrating to deal with. On the bright side, it looks like these issues will slowly improve over the course of 2023, and make shipping costs easier on everyone.