- Goods shipped between China and the U.S. via container ship used to take just over 40 days.
- However, hold-ups and delays in July, August and September meant this time increased to upwards of 70 days.
- According to freight booking platform Freightos, container ship pile-ups at ports on both ends of the journey are significantly increasing the transit time and are adding to the global container shortage.
While before the coronavirus pandemic, goods shipped between China and the U.S. via container ship took just over 40 days, hold-ups and delays have extended that time to upwards of 70 days in July, August and September of 2021. The delays are much longer than those at the beginning of the global coronavirus pandemic in the spring of 2020, when transit time briefly spiked at 56 days.
According to freight booking platform Freightos, container ship pileups at ports on both ends of the journey are significantly increasing the transit time and are adding to the global container shortage that has seen shipping boxes pile up in the U.S. and Europe as the stream of wares coming out of Asia intensified again in 2021. The more permanent reopening that the U.S. has been experiencing at this point in the coronavirus pandemic has led to many retailers frantically restocking, with the upcoming holiday season already in mind. Power shortages, recent holidays taking place in China and finally Typhoon Kompasu pummeling the Southern Chinese coast have also not aided a streamlined shipping process either.
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What is the World Economic Forum doing about blockchain in supply chains?
The World Economic Forum has joined forces with more than 100 organizations and 20 governments to accelerate the deployment of blockchain for supply chains – responsibly, securely and inclusively.
The multistakeholder team, represents large shippers, supply chain providers and governments – including Maersk, Hitachi, Mercy Corps, Korea Customs Service, Llamasoft and Ports of Los Angeles, Oakland, Valencia and Rotterdam.
The group will co-design an open-source toolkit to guide supply chain decision-makers towards utilizing blockchain to maximize the benefits and minimize the risks of the technology.
The World Economic Forum’s project, Redesigning Trust: Blockchain for Supply Chains, is part of our Platform for Shaping the Future of Technology Governance: Blockchain and Digital Assets.
Companies globally can join our efforts to streamline new and complex technologies like blockchain, helping to revolutionize sectors and ecosystems and build trust globally. Click here to find out more.
In early October, Freightos said that shipping containers from Asia to the U.S. West Coast was now 330 percent pricier than it had been a year earlier. The cost of shipping goods from Asia to Northern Europe had even increased by 570 percent, but rates still remained slightly lower in absolute terms than for the Asia to California routes.