As the world begins to slowly open following the pandemic many suspect that the supply chain shortages and price increases will continue well into 2022.
Although manufacturing in most sectors has opened the fact of the matter is the product shortages are here to stay. Many relate the shortages to the shipping and container costs hitting all-time high.
With shipping cost up at an average of 400% many businesses are reporting container cost have gone up from $1,500-$2,000 to $10,500. As we continue to hear about supply chain and shipping container shortages, they go hand in hand with price increases. Prices have been on the climb over the last few months, and it is seeming like as soon as we adjust to the new price we are getting hit with another increase.
In the past business have absorbed minor price increases to keep customers happy. However, with increases this large over a short period of time businesses just cannot afford to take the hit. Which is why we are seeing price increases industry wide. The fact of the matter is the cost of shipping is inflating the cost of the product.
With the cost of shipping not expected to go down anytime soon we can expect the costs of product to continue to go up into 2022.
Jung, C. (2021, August 20). Burnaby board of Trade Demands investigation as shipping Costs Soar more than 400% in 2021 | CBC News. CBCnews. https://www.cbc.ca/news/canada/british-columbia/shipping-container-price-increase-1.6146496.