Supply chains are breaking down and "just intime" is not currently working and transportation costs are at record levels. We are all feeling the effects of congested ports, reduced shipping capacity and additional container demand. In the USA, the development has reached the consumer and the first supply bottlenecks for components, furniture, textiles and electronics incl. chips are the result. There is no overcapacity in sea transport and consequently the buffers are no longer available and the result is exploding freight rates in many trade lanes. For further information we would like to refer you to the sources (newspaper) Handelsblatt 15/16 06 2021 as well as DVZ 16 06 2021. How can I try to absorb increased freight costs? - Early planning of your shipments and timely engagement of your freight forwarder. (Currently, advance arrangements of +4 weeks are often required for ocean freight shipments). - Examination of alternative shipping routes or ports of entry e.g. instead of shipping to Los Angeles, alternative to Houston or Chicago with rail on-carriage, in China traffic e.g. rail shipments "New Silkroad". - Adjust purchase contracts and letters of credit in coordination with the house bank and the forwarder at an early stage, extend transit times if necessary, include alternative ports & routes, check force majeure clauses or insert them. - Check whether the goods to be shipped can be adapted to standard container dimensions (avoidance of excess heights / widths). ...
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