An Update on The Shipping Crisis So Far

Good news for everyone- the shipping prices began to finally stagnate during the past week with a drop of 0.4%. While most popular routes globally, like Shanghai to Los Angeles, remained the same, routes such as Rotterdam to New York and Shanghai to New York all saw a decrease of 1%.

According to CNBC- and quoted by the INC- some economists and business leaders predict that the shipping crisis will now continue up until 2022. Goldman Sachs reports that the 70+ ships waiting outside Los Angeles and Long Beach carry about $24 billion worth of goods.

Due to the ever-growing backlogs, prices of consumer goods continue to skyrocket, and many are expecting fewer goods to be available during the holiday season.  

Adding to the overall crisis, empty containers continue to pile up at the Port of Los Angeles. Meanwhile, Chinese companies are experiencing a large shortage. With a lack of empty containers, many companies in China are having issues getting their goods out of the country, further adding to the fears of fewer goods for the holiday season. 

To alleviate some of the supply chain issues, Governor of California Gavin Newsom signed an Executive Order which mandates that state agencies continue to work with the Biden-Harris Administration Supply Chain Disruption Task Force and to identify state-owned properties or other locations that could serve as short-term storage once goods are unloaded from ships. Despite all of these efforts, the end of this shipping disaster still does not seem to be near.