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Why a Global Container Shortage and Supply Chain Disruption
What Shortage of Shipping Containers Means For Gifts Buyers Choices.
The cost of importing products from China increased to high levels.
The container crisis is an unusual shortage of space available to transport goods from Asia to the West. So, there is a big increase in the price of sea transport.
Why is there a worldwide container shortage?
1 —The pandemic
It began in the early months of the pandemic, in the spring of 2020 because consumer demand decreased and shipping lines canceled many of their routes between Asia and North America.
2 — Some Asian factories closed
Factory output rises at the slowest pace since July 2020. Some Asian factories are closed because of COVID-19.
3 —Delays at ports
Shipping experts say the rising ocean rates are the result of disruptions across supply chains that triggered delays at ports.
The ports of Los Angeles and Long Beach have at least 500,000 containers stuck in 75 immense cargo ships waiting for a spot.
All of these containers were supposed to be carrying other goods to the other side of the ocean by now.
