The 3 shipping reasons 2022 may be just as embarrassing:
If you think that the logistics crisis is going calm down after the holidays, I'm here to stop you.
Its an intervention.
1๏ธโฃ The Top 10 Ocean Liners Own 85% of the Market
It'll be around 90% come 2022.
They've been busy, not just getting more ships out on the water, but buying up containers as well.
So even if the amount of products to be shipped will reduce (it wont)
after the holidays, the majority of the market won't face much competition for price reduction.
What does that mean:
The few top companies have taken enough of the market to not worry about the few remaining that will undercut them.
So no need to drop pricing after the holidays.
2๏ธโฃ The Ports Won't Clear
At least not anytime soon.
We've covered this before, so here is the short of it.
A) The extended work hours only adds to unloading the ships. Does not increase the work to move goods from the port holding areas.
So the backup has only moved a step down the chain and will continue to hold up the whole port.
B) Companies know this, so they've already ordered more goods to supplement the products they are already waiting on.
C) There are still around 100 ships waiting offshore to get into port. Soon to add the amount from point B
3๏ธโฃ Factory Blackout Days
Most were caught off guard that China cut their factory work days in half for the rest of the year.
Many couldn't get all their orders fulfilled.
So after Chinese New Year and the factories reopen around beginning of March to new orders?
It is going to be bedlam.
More orders. More shipping containers needed. More price increases.
Well thats the short version of the bad news.
The good news?
The challenges can be addressed if you work at it now.
For our guide solving these problems, comment 'SOLVE' below and we'll send you our free 'How To Make 2022 Your Best Year and Not Go Bankrupt'
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