Slower demand for imports combined with a greater supply of ships means lower shipping costs overall.
The increased risk from conflict in the Middle East carries a premium.
Carriers are figuring out how to reduce risk and deal with disruptions caused by the Houthis’ attacks and low water levels in shipping lanes.
Firms that import goods are returning to pandemic-era strategies to brace their businesses against delays and higher shipping costs.
Shipping companies need to cover their higher costs, but there’s a limit to how much they can pass on to customers.
“We actually love the physical retail experience,” says Chris Capizzi, who co-owns A Good Used Book with his wife, Jenny Yang.
“There’s nothing I can do,” said India Hynes, CEO of appliance importer Vinotemp.
Uli Nasibova of Uli’s Gelato in Los Angeles, sees her future online, but getting there could mean some trial and error.
Clogged U.S. ports don’t just mean a longer wait time for you, the consumer. They also mean ripple effects for Chinese exporters.
To get customers their orders faster, Amazon spent an additional $1 billion in its latest quarter.
