Although shipping costs are declining, delays still occur due to labor shortages at important European ports, which disrupts global supply chains, The Wall Street Journal reported.
When commodities shipped by sea were delayed, and transportation costs rose as a result of the pandemic shock, supply networks never fully recovered.
Europe’s ports are backed up because dockworkers are on strike or on vacation, and there is an overall lack of truck drivers. In addition, due to a lack of storage space and rail capacity in the US, boxes are left at ports for an excessive amount of time.
“Ships are still a gamble not worth taking. We are flying in our entire winter collection to make sure it arrives before Christmas,” Abbie Durkin, the owner of Palmer & Purchase, a women’s clothing and accessories boutique with stores in New York, told The Wall Street Journal.