Shipping is becoming expensive 🤯

Shipping is becoming expensive 🤯

Thanks to soaring consumer demand from economies in recovery, closed ports in some regions due to new COVID outbreaks, and shortage of workers, global shipping channels are running massive backlogs which is spiking shipping prices.

Estimates suggest transporting a container full of cargo (the 40 feet large metal boxes you see on massive ships) from Asia to Europe now costs nearly 547% more than it used to on average for the last 5 years — impact of which will be felt on everything from regular commodities (your coffee, tea) to specialized orders (like electronics).

Three ways the near term impact will be felt:

  • Retailers and businesses absorb the extra costs — which means lower corporate profits, and your favorite stocks take a hit
  • Extra costs are passed onto consumers — which adds to already brewing worries of rising prices
  • Or, halt trade — which means items run off shelves, and “marketplaces” suffer

Big picture — stocks of logistics service providers Blue Dart, Gati, DHL, Fedex blasting through the roof over the past year, but pricing spikes show the there’s ample harvest left in the market.

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