‘Perfect Storm’ Causing Shipping Issues Across the Globe

(KNSI) – If it seems like store shelves are still a little bare or that item you ordered online is still on backorder, you’re not alone.

Transportation experts say the perfect storm of a trade war with China, a global pandemic, and the recent clogging up of the Suez Canal have caused significant headaches across Minnesota, the United States, and the globe when it comes to supplies.

Another factor affecting global supplies is purchasing has been going on all through the COVID shutdowns, even when factories were shut down, causing a large backlog.

St. Cloud based Anderson Trucking Services Vice President of Internation Sales Jay Thomassen was a guest on KNSI’s Ox in the Afternoon and said the world supply chain is interconnected. If one link breaks, it affects everything else.

“I’m dealing with somebody from a furniture manufacturer, and his customers are here in the US, and he manufactures here in the US, but his supplies and his materials are coming from Indo China, Asia, and Vietnam. It’s a matter of the raw materials can’t get to the factories.”

That furniture maker is several months behind on filling orders.

Thomassen also says it’s getting more expensive to get things.

“Rates are skyrocketing. And it’s very difficult to find equipment and containers, as well as finding vessel capacity to be able to get that container on a vessel and moving where you need to move. It has been an ongoing situation for the past several months now. And that is just getting kind of worse.”

Thomassen told the OX, it’s not a question of money to fix this.

“The demand on our global supply chain is at all-time record highs. And so, trying to just buy your way into that supply chain is not always the answer. And it’s sometimes it’s just not possible.”

ATS Trucking is advising its clients to plan ahead and look at other options besides shipping containers to get their supplies.

Thomassen says the disruptions to the global market will remain for months, but he’s hopeful supplies will catch up in the next 90 days.

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