Bottlenecks in the global shipping industry are difficult to eliminate(6)

Bottlenecks in the global shipping industry are difficult to eliminate(6)

Japan's major shipping companies, such as Nippon Yusen, predicted at the beginning of this fiscal year that "freight rates will begin to decline from June to July." But in fact, due to strong freight demand coupled with port chaos, stagnant transportation capacity, and skyrocketing freight rates, shipping companies have substantially raised their performance expectations for the 2021 fiscal year (up to March 2022) and are expected to obtain the highest revenue in history.

Multiple negative effects emerge

The multi-party influence caused by shipping congestion and rising freight rates will gradually appear.

Delays in supply and rising prices have a significant impact on daily life. According to reports, the British McDonald’s restaurant removed milkshakes and some bottled beverages from the menu and forced the Nandu chicken chain to temporarily close 50 stores.

From the perspective of the impact on prices, Time magazine believes that because more than 80% of the goods trade is transported by sea, soaring freight rates are threatening the prices of everything from toys, furniture and auto parts to coffee, sugar and anchovies. Exacerbated concerns about accelerating global inflation.

The Toy Association stated in a statement to the US media that supply chain disruption is a catastrophic event for every consumer category. "Toy companies are suffering from a 300% to 700% increase in freight rates... Access to containers and space will incur a lot of heinous additional costs. As the festival approaches, retailers will face shortages and consumers will face more High price."