When our export clients have been asked what is their biggest challenge in terms of getting their products out to consumers? Most reply that they cannot get container space on the vessels. They also recognise there is a shipping shortage, so products are delayed, and delivery schedules are continuously being revised. Container shortages push up the prices of everyday goods, which inevitably reduces product margins due to the increased costs of shipping, finance, and long lag times between product orders and product arrivals. The snowball effect, in addition, equates to fewer units being sold, and if the current trend expands, there will be many defaults expected on financial loans to the smaller business. Every day that passes creates its own expanding problems. Yet, there is minimal talk of such matters in mainstream media. Insufficient regulation of private shippers is causing a market contest that ultimately pushes out smaller players and monopolises output to the larger organisations that can afford to priorities their shipping requirements.
This issue is something the governing regulatory authorities should be watching as inflation will negatively impact economic growth and constrict a quick recovery from the ramifications of COVID.