As the holidays approach, consumers are ready to shop – and retailers are desperate to have plenty to sell them. Some retailers have signed long-term shipping contracts they hope will stabilize the situation. Others are chartering their own ships. But both of these approaches are expensive. With the contracts signed, higher costs may very well outlast the pandemic.
Exorbitant multi-year shipping contracts and lengthy cargo ship charters could extend today’s high freight costs even after the worst of the supply chain chaos has ended.