We're definitely feeling the shortage of containers on the business side. Average prices of $3000 a container are now anywhere from $15,000 to $18,000 (from Shanghai to Los Angeles). We've had luck actually getting the containers, the harder part is just getting them on ships (as the article states, ships can pull the rug out from under you whenever, even days before your supposed to be loaded out).
A gut punch to your operating margin but still not remotely close to flipping the economics to move production.
A fun side effect we've seen is the wild routing being done to find ways to move containers. Rail to this place, ship from a smaller less busy port to the opposite side of the country and rail back. Goods still arrive faster for basically the same increased price.
A gut punch to your operating margin but still not remotely close to flipping the economics to move production.
A fun side effect we've seen is the wild routing being done to find ways to move containers. Rail to this place, ship from a smaller less busy port to the opposite side of the country and rail back. Goods still arrive faster for basically the same increased price.