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If you’re a fan of online shopping, you might have noticed that shipping has become expensive and time-consuming. Prices are going up all over the shipping industry, and it’s harder than ever to get your packages delivered in a timely manner. What’s going on with global logistics, and when will things get better?
Today we’re taking a look at the global shipping industry to help make sense of the delays and price hikes.
Shipping items has gotten harder than ever in recent months. If you’re waiting on packages from other countries, or even from other parts of the US, you’re not alone. An unprecedented surge in demand for consumer goods has snarled the US’s major ports, and truck drivers are slammed with more work than ever before.
Many Americans deferred their spending in 2020 and early 2021 amid an unprecedented global medical situation. Now that people are mostly back to work and have money to spend, they’re eager to make up for the lost time by spending tons of cash on consumer goods.
The shipping industry has more volume than ever before, but it hasn’t bulked up its workforce to compensate. Current employees are demanding higher salaries to handle the massive uptick in work responsibilities, while the industry struggles to keep up with the rising costs.
Meanwhile, the aging dock infrastructure in countries like the US intensifies the situation. It has added further issues to the already-complicated process of shipping goods across the globe.
Putting it all together: more people want their packages shipped and there are fewer people to ship them. This means demand is far exceeding supply, resulting in soaring prices across the logistics industry. Add historic inflation to this equation and you can see why shipping is so absurdly expensive right now.
If you’re sick of these delays and high costs, you’re probably wondering when things will return to normal. The bad news is that no one can say for certain. Inflation is only getting worse, and demand isn’t slowing down any time soon. US retailers have begun moving their manufacturing back to North America to hopefully cut down on their shipping costs and keep their margins from becoming too slim as customers grow weary of high prices.
However, it could be years before these efforts bear fruit. The shipping industry is likely to remain snarled and unwieldy for the foreseeable future. In the meantime, remember to shop local and support small businesses!
