The congestion outside of America’s ports has led to $24 billion in goods floating outside of California’s Los Angeles and Long Beach ports, according to CNN.
As the goods sit on the water, costs are rising for average Americans, shipments are delayed, and there are fewer purchasing options on store shelves. The problem, the outlet added, will likely persist into the middle of next year.
CNN cited a Monday note from Goldman Sachs to its clients, which said the backlogs and higher shipping costs will probably continue “at least” through mid-2022.
“No immediate solution for the underlying supply-demand imbalances at US ports is available,” said the note, relying on economists’ research.
Consumer prices are ticking up at the fastest 12-month pace since 2008 and the amount of products out of stock online has risen 172% compared to January 2020, per CNN.
The problem has been ongoing for weeks. In August, 44 freight ships were stuck outside the ports, which was the highest number recorded since the beginning of the COVID-19 pandemic.
Earlier this month, Walmart began chartering cargo ships amid the supply crisis in an attempt to prepare for the busy holiday retail season, following the lead of Target, Home Depot, Costco and Dollar Tree. The supply chain issues have been exacerbated by logjammed ports, COVID-19 and U.S.-China trade relations, as well as extreme weather.Internet Explorer Channel Network