(ConservativeInsider.org) – Many Americans have been complaining about the rising costs of goods this year, and the shipping industry is not immune to the trend. As of mid-July, the cost for a standard 40-foot container of goods to be shipped from China to New York is now almost $10,000.
Though the rates are not quite as high as they were during the early days 2020 when the Covid-19 pandemic hit the world, the new rate is more than two times what it was six months ago.
According to experts, the cause of the price increase is due to Houthi rebels from Yemen attacking cargo ships with missiles and drones, leading ships to travel around Africa rather than through the Suez Canal. More ships are necessary to transport cargo around the Cape of Good Hope, and the route takes much longer, leading to shortages and delays.
The Houthis are an Islamic military group based in Yemen but backed by Iran. According to Houthi leaders, their attacks on shipping vessels are caused by the bombardment of Gaza by Israel, suggesting the only way to end their attacks is for the international community to force Israel to stop the war.
Retailers are making do for now, but many are concerned that things will get worse as peak purchasing season arrives for the holidays. In addition to the crisis on the seas, many American manufacturers and retailers are concerned that dockworkers on the east coast might go on strike in October following the breakdown of talks with the International Longshoremen’s Association and shipping companies in June. Not only that, but Donald Trump, the Republican candidate for President, has suggested he will impose high tariffs on imported goods if he wins the election in November.
n response to these issues, many retailers are attempting to get orders shipped before a crisis begins, which has the potential to make the situation worse due to congestion. Some retailers have even reported that they used airfreight, which is “very costly” in order to get items shipped to the U.S. before Mother’s Day earlier this year.
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