If you’ve built a hotel, priced out a home renovation project, or even just tried to purchase a pair of jeans that were on back order over the last 12+ months, then you are intimately aware of just how tumultuous the impact of Covid-19 has been on the ocean container shipping market, and in turn, anyone that has been importing goods since the start of the outbreak.
We’ve seen everything from historical freight rates to extended lead times, and everything in between, all stemming from a myriad of factors including a continued surge in e-commerce demand, national lockdowns, Covid outbreaks at ports, equipment shortages, and vessel a turning sideways in the Suez canal to boot!
Source: Crisis24 – GardaWorld
While the logistical challenges have been more formidable than the industry is accustomed to, containers are still being imported and goods are still delivering to the jobsites, oftentimes just at a higher than expected cost and a longer than normal lead time.
MGroup, like others, has been adapting to this new climate. Our team continues to closely monitor updates from our freight forwarding partners, and we share those potential impacts with our clients. We are now using resources to track the actual published schedules of each container vessel, as opposed relying solely on updates from 3rd parties. And most importantly, we are promptly notifying our clients of new developments so that they can prepare as far in advance as possible, and allow them to make educated decisions.
We encourage our clients to order early and factor in potential lead time increases, as well as to anticipate fluctuations in freight costs during your bidding process.
More than ever, the communication between all parties is critical for a project’s success!