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“Shippageddon” to Hit Retail Brands Once Again

Supply-chain pressures ramping up as the holiday season approaches

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The supply-chain problems that arose from the pandemic – causing brands and retailers to be understocked and otherwise inhibit their ability to meet customer demand – are still unsolved, forcing them to brace for round two of “Shippageddon,” Forbes writes.

For starters, the price of shipping containers has skyrocketed in 2021, and costs are expected to continue rising. Salesforce is predicting that companies will spend even more on ocean freight in the second half of the year than they did for the second half of 2020.

The article also says UPS will impose surcharges on the largest shippers, on account of delivery demand exceeding capacity to the tune of 5 million packages per day. Likewise, the U.S. Postal Service is seeking a peak-season rate increase for brands and retailers.

Then there’s Amazon and the changes the company has made in 2021, including new limitations on inventory storage. These moves have made it more difficult for sellers to gauge how much inventory they have and keep from going out-of-stock.

The article highlights ways in which companies are trying to work out the kinks in their supply chains, but for the most part, “it will be another year of simply muddling through the fourth quarter.”

Read more at Forbes.

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