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Experts Predict Current Shipping Woes Will Carry On as 2022 Continues

Trusted economists are claiming that the delays in shipping will continue to hinder major trade lanes well into the new year. Without much of a resolution in sight, the backlogs being experienced by many businesses due to backups at the nation’s biggest ports are not set to resolve anytime soon.

Shipping entryways like the Ports of Los Angeles and Long Beach continue to serve as a holding ground for dozens of large container ships offshore waiting to be unloaded—resulting in a shortage of goods and higher costs across the board.

There is some good news as predictions of less container traffic will allow some of the bottleneck to ease. Also, some companies are taking advantage of the disruptions by developing new innovations to keep their products moving.

Consumers are Experiencing the Consequences

With an estimated $24 billion of goods waiting in the water, manufacturers are anxious to get their products in to the hands of distributors. Many consumers are feeling the pinch by enduring scarce shelves in many stores and paying higher prices in general.

Fortunately, there was not quite as deep of an impact as many analysts had predicted over the holiday season, but businesses should not hold their breath when it comes to hearing good news regarding logistics and supply chains.

Ronnie Walker with Goldman Sachs shared that backlogs and elevated shipping costs are likely to persist at least through the middle of 2022 due to a lack of solutions for the underlying supply and demand imbalance at the nation’s ports in a recent note to his clients.

More Players are Working to Provide Solutions

Longer shipping times on the front end results in delays in products reaching their next destination onshore; and the situation continues to receive attention from Washington. With President Joe Biden ordering ports to stay open 24 hours a day, more time does not automatically equal more production.

Labor shortages and crowded waterways continue to hamper the efforts from all involved trying to expedite solutions. Companies should be prepared for more of the same as they make plans for moving product this year.

As a supplier of countless shipping and packaging products, USA Strapping can help ease the burden for companies at every point in the process. Call USA Strapping 888-768-0001 or use our online contact form to request more information today!