Covid Continues to Disrupt the Supply Chain

Covid Continues to Disrupt the Supply Chain

Cris Cortez, Director of Operations, ingredientsonline.com

Transparency doesn’t just apply to our ingredients; we want our valued customers to be aware of what is happening within the supply chain. Over the past year, various situations have affected the shipping time and prices of goods. 

India is being hit hard by Covid 
Case numbers are on the rise in India, which means factories are being shut down. Although this is a state-by-state mandate, it looks as if factories will be shut down for some time. India is opening vaccinations up to all adults over the age of 18 on May 1 and we are hopeful that this will eventually lead to factories reopening but are unsure of a timeline. 
 
Ocean and air freight issues are increasing due to high, non-stop demands  
Asia and the United States are both facing high import volumes and congestion at their ports as global trade economies begin to reopen. China’s ports are up 14.5% in volume and the Port of Los Angeles saw a 47% increase in container traffic compared to last year. These high levels of congestion and traffic increase shipping time. Packages that would normally take four weeks to ship can now take up to nine weeks, causing a shortage in dock workers, ships, and trucks. The rise in demand means the rise in container rates, which ultimately means the rise in shipping costs. Due to ocean freights being unreliable and expensive, importers are turning to air cargo. Shipping by air means high fuel costs, high volume, and limited capacity. 
 
Trucking rates have been steadily climbing since last year 
Due to Covid regulations, consumer demand, and a shortage of drivers, there has been a truck shortage. High demand and a shortage of trucks are resulting in higher shipping costs that are not expected to clear up until next year. 
 
Covid lockdowns, saturated ports, and lack of labor are all resulting in higher shipping costs. Experts are expecting these high shipping costs to continue and will not be going down anytime soon. Although we cannot control these factors, there are a few things our customers can do to best navigate this time. Be sure to place your orders ahead of time and allow ample time for shipping. If you order ingredients from India, be sure to order as soon as possible. You may also want to consider exploring ordering from other sellers in our global marketplace. 

We are here to support our valued customers and will keep you updated as these situations progress. Please contact us if you have any questions or concerns. 

 


 

IO Updates
Cris Cortez is the Director of Operations for ingredientsonline.com. Focusing on operational enhancements to drive business growth, Cris has been leading the company’s key initiatives for over two years. He has maintained a career that is deeply rooted in operations – with a background in e-commerce marketing, sales, and customer service operations. Through previous experiences at Houzz.com and Blisshomeanddesign.com, Cris brings a digital, online perspective to everything he undertakes at ingredientsonline.com. He is passionate and prepared to drive IO further into the digital world and is dedicated to bringing a familiar online experience to ingredients buyers worldwide.

11 days ago