Is the Holiday Season Making The Shipping Crisis Even Worse?

It's been nearly two years into the pandemic, and even though vaccinations have rolled in and lockdowns are lifting, we still suffer from a massive global disruption in the supply chain. There is a network of container vessels and ships stuck in various ports worldwide, causing shipping costs to skyrocket.

It's a very bad situation to be in, and its implications can be quite troubling for the average shopper this holiday season. 

How Will The Shipping Crisis Impact Supplies?

First of all, the delay caused by this shipping crisis affects both price and the availability of products. Even if suppliers somehow manage to make it through the holiday season without showing signs of shortage, the implications of this unprecedented situation are boundless.

After all, to meet the demand, most sellers will have to let their inventories dry out. This is not good for anyone since the shipping crisis is projected to continue into the second quarter of 2022.

The Crisis Won't Go Away After Christmas

Unfortunately, this doesn't end with suppliers finishing their stocks. It also means that not only will the crisis continue, but it will also lead to further pressure, which may make matters worse. It also shows that there will be a massive increase in cargo costs, leading to an increase in consumer prices. The cost of shipping goods from China to North America and Europe has steadily increased over the past few months.

Many logistics services have been running at maximum capacity in the last few months. But it's not just the maritime industry that's in trouble either. Due to the delay in shipments, companies have turned to air terminals to deliver their goods on time. 

This has led to a strain on the air cargo industry as well, with airports in the United States seeing delays of about two weeks as well. The situation will improve drastically before the holidays. Governments and shipping companies are trying to make things better, but this is a major issue with a solution that will only come by months later. 

For now, shoppers will have to accept an increase in price for goods as well as longer than normal delivery times.