Welcome to Monday, November 29th, seals and sea lions...
Cyber-Mondaying today? Then you may want to know...
Here, we answer all your questions about shipping delays, including:
What’s the holdup?
This is a complicated question that involves a compounding of pretty much every piece of the supply chain--labor shortages, backlogged ports, increased demand, and an outdated shipping system in the U.S.
- Significant delays began last year due to the COVID-19 pandemic and the impacts are still ongoing.
- During the pandemic, people shifted their consumption patterns from events and outings to physical goods. Increased demand has shipping traffic up 50% from pre-pandemic levels at the Port of Los Angeles, which handles 40% of U.S. imports.
- Ports are also dealing with major backlogs. Labor shortages are a big part of the problem, both at the ports and in the trucking industry, which is estimated to be short 80,000 drivers. Employee burnout and poor treatment, COVID-related deaths and outbreaks, and simply too much demand are all contributors.
- The executive director of the Port of Los Angeles says the U.S. is “decades behind” other international ports. A lack of information sharing and transparency throughout the supply chain, equipment shortages, and an industry-standard of just-in-time manufacturing make the U.S. particularly vulnerable to big shifts.
Have you experienced shipping delays?
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