TOLEDO, Ohio (WTVG) – If you’re wondering why you’re paying higher prices you need to look no further than the backup at the ports.
There is a domino reaction to the delay in imported goods to the U.S.
First, there are the pictures of shipping containers either stuck offshore on ships or stacked on the shores waiting to be loaded on trucks or trains.
Chris Miller is the Vice President and CFO for Marck and Associates. One of their companies is International Tableware that imports from all over the world.
“That time used to take one week, now it takes one month.”
Miller goes onto the say that the next chink in the supply chain happens once companies are able to get their containers to the nearest customs site, which for them is Detroit. That system is also backlogged for inspections and clearance so the containers sit once again for 2 to 3 weeks while being charged anywhere from hundreds to thousands in storage fees while they wait for inspection.
“We are paying 5 to 6 times what we paid just a year ago. And the timing is 2 to 3 times the amount of time.”
There is no way any company can absorb the additional costs to get goods in, so that cost is in part passed onto customers. While companies the size and diversity of Marck can weather this unprecedented storm, Miller says the smaller companies are really struggling “These are Mom and Pop companies. Grassroots and they rely on every penny that they can make and if they can’t get the product then they’re out of business.”
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