Freight forwarding company Verus Global‘s CEO Jackson Meyer says there are issues with the supply chain at the moment, with Australia at the bottom of the pecking order and 600,000 shipping container slots withdrawn in Australia, with trade in the US being prioritised.
“The Gross Domestic Product in the United States of America is astronomical.”
“The shipping market is feeling the impact of US congestion on the industry and as a result this directly affects businesses, who then will pass on costs to the consumers.”
“The cost of consumer goods has risen dramatically thanks to a global shortage of shipping containers and the pandemic. Unfortunately this will continue to rise,” explains Meyer.
Verus Global envisages consumer costs increasing
The cost of cardboard packaging vs the container in shipping the package is cheaper thus companies will pay more for cardboard packaging and pass these costs directly to consumers.
“Most of the items purchased online come wrapped in plastic or tissue paper and the cost of these raw materials will continue to rise due to the container congestion globally.”
“This ultimately means your UberEats is going to get more expensive,” states Meyer.
“The supply chain issue extends to imported foods, Hungry Jacks could not get their hands on hashbrowns for 10 weeks – there was a shortage of hashbrowns!” adds Meyer.
The situation is so dire, that Australian companies are seeking to produce packaging locally, as importing from China is no longer a feasible option, and does not provide a reliable ETA.
Meyer states that there is no end in sight and that consumers will feel the effects acrossthe food and beverage industry, and across the fuel, retail, and homewares industries.