Figure 1 Shipping Containers in Port -photo credit Andrey Sharpilo
And the goods are piling up in other places.
Bloomberg and other sources are drawing attention to a looming global crisis. Meanwhile, in the coming days and months, the most expensive air in the world will be delivered to ports across China. This air will be found inside the empty shipping containers that are now making their way across the Pacific to Chinese ports where goods from across the region are piling up. Elsewhere across Asia and in North America, crops such as rice, sugar, bananas, coffee, and soybeans are also piling up because they cannot be loaded into the shipping containers prioritized and paid for to be delivered empty to China. In some cases, the food is losing value due its perishable nature.
As unlikely as it seems, China, the first country to experience COVID-19 and one of the first to be emergent from it, is overpaying to have the empty boxes shipped back rather than allowing them to be filled with exports from North America as would be the norm. The effects of this further disruption in trade are probably yet to be felt.
Bloomberg quotes one source as saying, “You’re going to get not only a shortage of food but a shortage of everything” and predicts that freight rates could be double from previous years throughout 2022.
Fortunately, Ecorite has been monitoring the situation closely with its suppliers and forwarders and is making the necessary adjustments to its supply chain when required. This is good news for you because it means we have plenty of stock!
If you have needs for bags over the Holiday season, make sure you get your orders in soon for best selection and availability.