The Electronic Retailing Association

Is the worst of the supply chain crisis over?

Photo by Guillaume Bolduc on Unsplash

October 14, 2021

With the steepest weekly drop in the price of a 40-foot container in the last 19 months, the global supply chain crisis is showing signs of easing. The rate for a 40-foot container sank by almost $1,000 last week, an 8.2% drop from the prior week.

Nevertheless, ocean freight is several times more expensive than it was pre-pandemic and air cargo rates remain elevated, as showed by specialists. "Shipping container rates are still very high, ship sales are brisk, and old container ships have been pulled off the queue for scrapping and commissioned back into business. Shipowners have locked in years of profitable contracts, as long as they can collect on the invoices, that is," reports John Dizard, columnist for the Financial Times.

"Our industry like many others has been facing steep freight rates & cost hikes. A 40 ft container was costing upwards of $20,000-$25,000 but thankfully there is slight relief from this disastrous situation. We are now getting freight booked for $10,000 for the month of October and even $8,500 cost from Yantian which seems like a steal! Finally, there is light at the end of the tunnel," declared to us Poonam Khubani (photo), President TeleBrands International, USA. Read further details on Bloomberg.