Shipping Crisis: The Chaos Continues...

The ports continue to face unprecedented traffic with a staggering number of containers stacking up like tetris blocks. The shipping crisis continues to impede global trade, hampering attempts to recover from the economic damages of the pandemic.

Recap on the shipping crisis

The seamless choreography of global cargo was interrupted when demands for consumer goods exploded in the United States as many people were purchasing products for their homes during the pandemic. This surge in demand outstripped the number of shipping containers available, resulting in a floating traffic jam at the ports. The disbalance of the supply chain coupled with logistical issues, including the shortage of dockworkers, has created a ripple effect that can be felt all over the world.

What is the current situation? 

The pileup of goods at warehouses is struggling to meet the shipping containers marooned at ports. It’s becoming a common sight to see ships anchored miles away from the coast, awaiting their turn to offload. The crisis is proving to be a catalyst to revisit the world’s shipping infrastructure. Containers with holiday presents and decorations are now getting in line with the unfulfilled orders due to bottlenecks, which might result in fewer presents under Christmas trees this year.

While there is no quick fix, companies are looking at newer ways to combat this crisis. Retail giants such as Target, Costco and Home Depot have stockpiled their warehouses and even chartered their own cargo ship to the US ahead of the holidays. Coco-Cola has chartered bulk shipping vessels – usually used for coal and grains – to prevent further delays.


Forecast of the shipping crisis

Shipping prices have already soared, and the bottlenecks seem to be mounting further. Businesses are being forced to review the market retail prices of their products. While the situation is predicted to ease out by mid-2022, it is extremely hard to predict at this time as we are in completely unchartered waters. 


Where Copra Coconuts stands

While large companies are going above and beyond to unite customers with their products purchased online, small businesses like Copra Coconuts unfortunately lack the resources to purchase or charter their own ships. What we have done is plan well ahead with many of our clients to ensure that we are in stock, on time, and prepared to fulfill all demands.

A good way to go about your planning is to look at least three months into the future and mapping out your requirements. If you are already planning your 2022 inventory for bulk supply of young Thai coconut meat or order in wholesale, visit our online store or contact us for more information, and we are happy to help and talk through any supply chain related questions.

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