The network of ports, container ships, and ground transportation companies that move merchandise around the world is currently in a crisis situation; resulting in increased international shipping costs.

More than 18 months after the pandemic, the interruption of global supply chains is getting worse, creating scarcity and driving up international transportation costs which could affect consumers’ purchasing ability during the Christmas season.

The root cause of the problem lies in obstacles such as the COVID-19 closure of Chinese ports, exacerbated by the recent appearance of the so-called Delta Variant. Due to these factors, major shipping companies such as Maersk, Hapag-Lloyd, and CMA CGM have advised their clients of the possibility of delays.

In turn, the port delay has created a domino effect of overloaded warehouses and capacity constraints on road and rail networks.

It is important to emphasize that cargo logistics networks have been operating at their maximum capacity for months now – largely due to a surge in demand caused by economic stimulus measures received by US consumers.

The net result of all these problems is their impact on retailers and international goods companies as they struggle to restock their inventories ahead of the crucial Christmas and end-of-year shopping seasons.

Nevertheless, not all of the news is bad, given that these factors have driven many large companies to open new logistics processes with additional ocean shippers, as the former seek to meet the needs of their own customers.

If your company is searching for alternatives to these problems in your logistics, contact us by clicking here!

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