Shipping Market In 2020

The cost of shipping goods from China to Europe and US has increased by up to 500 percent in recent weeks as the balance of trade routes is disrupted by the pandemic, resulting in a shortage of shipping containers.

In the first half of 2020, a global slowdown caused by the pandemic meant many shipping lines were canceled. Now, Asian economies are restarting their engines and Western demand for China-made goods is on the rise. But congestion at European and US ports because of current lockdowns means the containers can't be returned to Asia quickly enough – so there aren't enough shipping containers where they need to be. And prices increase as companies fight for the few containers in circulation. The pandemic really broke the cycle of the supply chain and how it works. It's a fragile ecosystem and once it starts breaking down, it's very difficult for it to catch up again.

The skyrocketing costs are having a serious impact on businesses that are having to either absorb the costs or pass them on to the consumer.