Shipping container prices fall but the global supply chain crisis persists

By Irene Galea and Brent Jang
The Globe and Mail
June 1, 2022
Category: Business & Politics
Region: Canada, International

Costs for shipping goods in containers have been dropping since March, though experts say it’s too early for retailers to celebrate as congestion in the global supply chain lingers and consumer spending shifts. …Since March, prices have tumbled by 19 per cent, according to two shipping-container indexes. Global events including Russia’s invasion of Ukraine and lockdowns in China have also reduced the number of shipping containers in use, freeing up supply. As a result, the containers are down to their lowest prices since June of 2021. …Port bottlenecks and land transport delays, however, continue to slow the price decline. Yet prices remain high compared with prepandemic levels. …After two years of expensive shipping costs, cargo companies have prospered – in some cases doubling their revenue year over year – while retailers have struggled to find adequate shipping capacity as their margins thinned. That trend is finally starting to reverse, some retailers say. [to access the full story a Globe & Mail subscription may be required]

Read More