Because of a container shortage, the cost of ocean freight from China to the U.S. has soared tenfold since August and reached a record high.
The price of a 40-foot container from China to the U.S. used to cost between US$1,000 and US$2,000, but since August it has risen to a record US$20,000. COVID shutdowns in ports in certain cities in China and other countries as well as a shortage of drivers at the port are the main culprits. It has a domino effect on the downstream supply chain, particularly in September and October when most of the goods entering the North American and European markets are for the upcoming Christmas shopping season.
Even though Chinese container manufacturers have increased their capacity to build more containers, it will still take some time to ease the constraint. Therefore, the container shortage will last for a while.
Source: Epoch Times, September 28, 2021