Why has the cost of global shipping risen so dramatically this year?

Consumers and businesses find delays and price increases for many items. It is thought that it all boils down to a lack of empty containers, or rather, too many empty containers in the wrong place.

Containers are seen transported at Ningbo-Zhoushan port in August Source: Visual China Group

The closures and delays due to COVID have destabilized global supply chains. And as supply chains around the world battle the effects of the pandemic, global shipping costs have risen dramatically this year.

This has been frustrating for businesses struggling to keep up with consumer demand, but the shipping business is making an estimated $150 billion in profits in 2021.

The massive disruption caused by COVID-19 has exposed vulnerabilities in global supply chains. This reminds us that shipping containers worldwide on schedule is very important.

 

Click on the image above to listen to this feature.

 

---

Listen to SBS Indonesian every Monday, Wednesday, Friday and Sunday at 3 pm.

Follow us on Facebook and catch us on podcasts.