Long delivery waits and higher costs are hurting efforts of small/midsize businesses to benefit from the rising economy. As large companies rush to restock, smaller firms are battling over dwindling cargo space on container ships from Asia and paying up to 3x the going rate.
The average price to ship a container from China to California is $6,043, up 344% since January 1, 2020, per Freightos Baltic Index. NY-based Hudson+Bleecker (H+B), which sells travel bags, used to pay $3,500-$4,500 for containers pre-COVID with waiting time to sail of 10 days vs. $17,000 now and waiting time of 2 months. Shipping costs now account for 30-35% of H+B revenue vs. 15-20% in 2019. Specialized Bicycle Components from CA imports about 1 million bikes annually. Transport costs have tripled and delivery times have doubled since 2019.
Supply chains are stressed, but MOSIMTEC supply chain simulation modeling can help. Test each tier in your supply chain virtually to identify risks. Explore ways to prevent/mitigate those risks. Evaluate options, backup plans, alternative suppliers, substitutes, reshoring and more in a sandbox environment before making real world changes. Develop plans to tackle supply chain problems before or when they fester. MOSIMTEC can help.
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Read more here: https://www.wsj.com/articles/shipping-delays-and-higher-rates-get-small-businesses-jammed-up-11626015600