It could not be the usual good tidings for Christmas this year when it comes to gifts. Their arrival from abroad may not be timely and be more expensive. Nothing to do with Father Christmas himself; the fault lies in disruptions in the supply chain. The effects of Covid-19 on transport to and from China, for example, can still be felt. During Covid-19, some ports in China were closed, resulting in significant shipment backlogs.

Vulnerability of Supply Chain

This goes to show how vulnerable the supply chain is to events around the world. And it is not just Covid-19: the effects of the Evergreen incident that resulted in the blocking of the Suez Canal, are still reverberating throughout the supply chain. Coupled with that, increases in demand and a lack of supply of containers is resulting in bottlenecks, with agents struggling to find container space for their clients’ products. Even if this is solved, however. There is still the issue of delays, with containers stranded, waiting their turn at transportation. This is resulting in delays for key industrial components, prolonged orders, shortage of shipping equipment and high cost. Due to fluctuations in transportation prices, price planning is also becoming a problem.

Strong Demand in Europe

Notwithstanding all this, consumer demand in Europe is still going strong on a broad range of products. Naturally, this means more pressure on importers and exporters to satisfy this demand through effective supply-chain and shipping solutions.

Resilience of Chinese Industrial Sector

On its part, the Chinese industrial sector has once again proved resilient, posting an export surge of a whopping 25.6% in August, up from 19.3% in July. Chinese products are relevant to the global economy, and increasingly so.

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freightzone to help you with freight costs

Freightzone’s vast expertise in the Chinese market, both import and export, can change threats and weaknesses into profitable opportunities for clients.  Whether it’s demographics, shipping, network coverage, or customs practices, Freightzone has what it takes to make your business more viable, through effective communication with the client to ensure the best solutions are found. Whatever the challenge, Freightzone’s can-do attitude, coupled with its on-the-ground expertise, can provide effective value to clients in terms of effective lead-time, whilst minimising shipping costs. 

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