Pandemic aftershocks overwhelm global supply lines
Mar 31, 2021
Since the beginning of 2020, the COVID-19 pandemic caused countries to shut down their borders and limit transportation, creating obstructions for international trade and transportation. Factories closed, resulting in a slowdown in the flow of capital, goods and services. The dramatic changes in consumption during the pandemic has upended traditional trade patterns and caused global commercial challenges that will affect economies for years to come.
For example, according to a recent Washington Post article, last year’s stop-and-go global economy effectively shifted five million shipping containers from the first half of the year to the second half causing different bottlenecks all at the same time. This disruption has caused an increase in shipping costs across many industries at sea and ashore.
“The cost of shipping a container of goods has risen by 80 percent since early November and has nearly tripled over the past year,” according to the Freightos Baltic Index.
Logistics systems are having to adapt to handle huge shifts both in consumption habits and delivery capabilities. Learn more about this global issue and how cargo carriers are struggling to keep pace here.
Why should you care?
Supply chain disruptions and shipping issues are affecting everyone and will likely continue until the pandemic diminishes and consumer buying patterns return to normal.