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Global Shipping Crisis: Prices Soaring as Containers Are Stuck, Leading to Longer Delivery Times and Supply Chain Disruptions

The problem is twofold, he explains: “The containers that normally go from Europe to China, India or Vietnam do not get there. As a result, there is a lack of containers in those countries. So they cannot be filled. If they do If they get filled, they have to sail via South Africa and you have two to three weeks longer delivery time. And because there are no containers, prices go up, it is practically the same situation as we experienced during corona.”

That the prices of the goods will rise is almost certain, according to Couvreur: “On December 31 we had a certain price for a container coming from the Far East and on January 2 we woke up with a price that was 7 times higher for the same container. The shipping companies got scared, they had to take out extra insurance, or pay extra to sail around Africa, which caused an extreme reaction.”

“It is an identical situation as in corona, but one has to be flexible in those matters, we have also survived corona.” If the situation in the Red Sea continues, the marketing manager sees only one solution and that is more purchases in Belgium and Europe. That’s where 70 to 75 percent of the goods now come from.

2024-01-15 20:09:00
#Furniture #company #fears #delayed #deliveries #due #attacks #ships #Red #Sea #corona #crisis

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