2021 has proved to be a challenging year for many industries affected by the pandemic. Shipping is something that most of these companies have in common across industries, as they all depend greatly on the movement of their goods to complete transactions. Continue reading our blog to learn more about how this year’s shipping challenges might affect your business.
One reason shipping is expected to be delayed and more expensive in 2021 is that there are serious labor shortages for supply chain workers. There are simply not enough workers throughout the supply chain to meet the increased demands that come during the holiday season. The companies who handle the processing, moving, selling and delivery of these goods are overwhelmingly understaffed, resulting in slower services throughout each of these steps. Additionally, there is a national shortage of truck drivers, making it even harder for goods to reach their destinations once they do make it through the process of getting onto a truck. There is a considerable difference between supply and demand, creating ripple effects across the United States and beyond.
Computer Chip Shortages
The United States is also experiencing a major computer chip shortage, which trickles down to most aspects of the supply chain. Computer chips are used not only for products such as TVs, laptops and cars, but they are also used to operate much of the machinery needed to produce many products and fulfill services, leading to a scarcity of many products on shelves and much longer service and delivery times.
In most aspects of shipping, you will see prices being increased for the same or similar services completed in previous years. Historically, companies have avoided having to increase pricing for shipments during the holidays, even with the increased demands, because they have been adequately staffed and have the resources to get the work done but 2021 is the first year that many are upping their prices out of necessity. The USPS is increasing their shipping rates for both commercial and individual customers. In 2020, they did increase shipping rates but only for commercial customers meeting certain criteria but they were able to avoid the extra charges to their customers until now. Companies like UPS and FedEx are also expected to increase their shipping prices as well.
Avoid Additional Challenges in Your Holiday Shipments
The COVID-19 pandemic is exposing the weaknesses in the United States supply chain.Though many of these challenges are inevitable in the current climate, you will have the best opportunity to have a more cost-effective and successful shipment by working with 3PL you trust. LogiWorld services the Greater Boston area and beyond, helping our customers transport their goods whether it is for a business or individual, whether you are shipping locally, across the country or to a different continent. Contact us to learn more information about our holiday shipping services!