Shortage of Shipping Containers in the U.S.
Supply Chain Crisis
Supply
chain crisis is a complicated global supply network and logistics processes
that are being simultaneously strained at many different points. Some supply
chains are experiencing enormous surges in demand, others are experiencing
reductions of capacity due to covid shutdowns or staffing issues and still,
others are failing altogether due to a lack of components or raw materials.
This causes shortages, long production & distribution lead times, and
ultimately, stock-outs for consumers.
Pandemic impact on shipping containers shortage
COVID-19 (corona virus disease 2019) is an infectious
disease. It has spread globally since its very first appearance in China,
resulting in an ongoing pandemic. Globally, the pandemic has caused significant
social and economic disruption, including strict social distancing, travel
restrictions, and one of the most severe global slowdowns since the Great
Depression.
As different parts of the world recovered from the pandemic
late last year, there was a buying frenzy, resulting in critical container
shortages. This resulted in massive delays in the shipment of goods from
China to Europe and the United States, as well as price increases for
businesses and consumers. Due to this, there were shortages, long production
& distribution lead times, and eventually, consumers ran out of products.
Reasons behind container shortages
A container chassis is a specially designed trailer that can
be used to transport a shippingcontainer over the road. For a terminal to function properly it is
essential to have enough chassis equipment; otherwise, trains cannot be
unloaded and turned back toward their origin.
Over the past six months, the backlog of delayed shipping
containers at train stations, patios, and rails across the United States has
grown dramatically, and chassis deterioration has reached nearly zero. All
major cities of the United States are a major problem hindering the
transportation of imported goods, or export goods. Major changes may be
required to resolve the current crisis and, if possible, to avoid it in the
future.
American chassis are starting to roll off the assembly
lines, but they are more expensive than pre-tariff Chinese chassis, raising the
price of everything that travels by chassis. Tariffs have contributed to a
chassis shortage in the midst of an import boom, which is one of the reasons
why American ports are congested.
Truck drivers are critical to the shipping
industry in the United States. They transport goods between ports,
warehouses, rail yards, distribution centers, and retailers, carrying more than
70% of all cargo traveling across the country. However, the country may be
short as many as 80,000 drivers right now. Many Americans decided to leave jobs
that required frequent public contact. This resulted in a labor shortage to
unload ships, transport goods, and staff retail stores.
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