Transporting...
The past 18 months has seen dramatic strain on global supply chain. Shortages of equipment (containers) from the Far East as well as limited space on vessels. The net result, sadly, is that the movement of goods from the Far East to the rest of the world is taking far, far longer than before, and due to the demand, shipping lines have drastically increased their basic ocean freight rates.
Out of pure desperation, many importers are having to air freight higher valued goods to meet deadlines, albeit at a huge additional cost. This done in a bid to save their business, retain their clients and keep the wheels turning. As a result of this, the high demand is putting pressure on the Air Freight industry as well, which has also been met with increased rates.
To illustrate the enormity of the crisis that supply chain finds itself in, we are sharing a short ’60 Minutes’ documentary on the port of Los Angeles, which is the largest seaport serving USA. We, in South Africa, are experiencing much the same, although not nearly on as much of a grand scale.
When will this all end and return to normal? At this stage its anyone’s guess and will certainly not happen overnight. Its something that will slowly over time return back to normal.
