The head of the shipping company says that the problem of the “black swan” port in China will lead to higher prices in the US this summer
Stalls inside China’s ports will likely force the United States to experience another supply chain disaster this summer, a shipping and customs company noted Thursday, eventually sending consumer prices to their highest peak this year.
“The prices were high last year,” Alba Wheels Up International President Sal Stile told Lydia Hu of FOX Business. “It may not be high this year, but in the high season, it will be the highest for 2022.”
Marine traffic data shows hundreds of cargo carriers sitting idle outside Shanghai, unable to load or unload shipping containers. Hu said in her report that China’s backlog is mainly due to the recent strict lockdowns of the coronavirus linked to the country’s worst outbreak since the pandemic began.
Steele pointed out that the problem of the policy of non-proliferation of the emerging corona virus is a unique problem for China.
“You never know when this, again, Black Swan will come or close another port,” he said.
Labor minister sees ‘potential’ supply chain problem caused by China
Steele explained that the shutdowns in China that are now causing labor shortages and port closures “is not just a China issue.”
Hu noted that experts say supply chain issues are “just starting”, and they expect to “really see them spread across the world and into the United States all summer long.”
The ripple effect, according to Style, will be a nationwide price hike that can be seen on grocery store shelves and seasonal items.
“Traditionally, summer is the busiest import season in the United States,” he went on to explain. “It’s all holiday goods, it’s all about back to school, and it’s going to be a raise.”
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Stile, which helps companies secure container space on cargo ships, has remained wary of when prices will eventually fall in the summer.
“The supply chain is still very fragile,” said the shipping and customs expert. “We still have problems at ports in the US with a shortage of equipment…I don’t know when that will actually dissipate.”
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