Arrange shipments now before it’s too late!

Covid-19 cases are down 89% from the January peak. Half of Americans are fully vaccinated. The economy and employment are picking up steam. The stock market is surging.

Things are looking up, right?  Yes, we’re seeing light at the end of the pandemic tunnel. But don’t open the champagne yet. There could be more trouble ahead for importers and shippers. 

Four trends are raising storm-warning flags:

1. Inventories are at historic lows.

For retailers, sales continue to outpace restocking. Even though imports are booming, the retail inventory-to-sales ratio has plunged to an all-time low.

“Inventories are flying off the shelves faster than companies can replenish them,” a Deutsche Bank analyst told American Shipper. “That is why the inventory restocking cycle is still in the early innings.”

2.  California ports are jammed. 

An armada of container ships are anchored at California ports waiting to unload. For many ships, time at anchorage has exceeded their time at sea from Asia. Vessel wait times are now one to two weeks in Los Angeles and three weeks in Oakland.

In an interview with Freightwaves, Nerijus Poskus, vice president of global ocean at freight forwarder Flexport, warned of a capacity crunch in the making. Contract and spot rates have soared. “It’s not getting better. It’s getting worse,” he said in late April. “What I’m seeing is unprecedented. We are seeing a tsunami of freight.”

3. Container capacity is maxing out.

Demand far exceeds container supply. Shippers who haven’t yet signed fixed-price contracts may be forced to pay skyrocketing spot rates.

Ocean shippers lack enough containers to keep up with soaring demand worldwide. Because containers are being tied up in transit for considerably longer periods, Hapag-Lloyd has ordered 150,000 TEUs of standard and refrigerated containers.

4. Shortages are rampant. 

It’s not just containers that are in short supply. Shortages are popping up in almost every industry. America is coping with shortages of computer chips for automobile manufacturers, a shortage of 60,000 truck drivers, shortages of IT professionals, shortages of field workers to harvest crops, and shortages of skilled tradespeople to maintain/repair commercial and home equipment.

When you connect the dots of these trends, little time remains for shippers trying to stock up for back-to-school and year-end holiday shopping seasons. 

Shippers need to act immediately to build up their inventories. AJC Logistics has been doubling our efforts to help customers arrange shipments of hard-to-get goods.  As a major importer and exporter for several countries, we help customers navigate the best way to manage through these challenges.  

What’s your situation? Call us— we will do our best to help you plan shipments and get your products from origin to destination in the most expeditious way.