topic Re: Who's Paying for Shipping? in Community Chat

Who's Paying for Shipping?

Kachina624 — Sun, 17 Oct 2021 16:51:36 GMT

This morning on the George Stephanopolous talk show on ABC, Martha Radditz did an excellent report on the West Coast shipping crisis. One amazing statistic mentioned was that the average cost of shipping a container of goods pre-pandemic was $1300. Now it's about $16,000. And people wonder why prices are escalating? Of course this is just one of the factors as there are many others.

After the good finally get shipped to us after their arduous journey, our own postal service is further holding up their delivery.

Re: Who's Paying for Shipping?

goldensrbest — Sun, 17 Oct 2021 17:13:10 GMT

Well, i don't know if this will get better for now, if only people would had not wanted to pay extra for usa made, and companies went out of business.

Re: Who's Paying for Shipping?

fthunt — Sun, 17 Oct 2021 17:13:31 GMT

I believe it.....but our situation has caused a bonanza for some industries to take full advantage to increase costs. Charge whatever the traffic will allow or accept.

Not needing a thing..... except for a half tank of gasoline to top my tank...I'm sitting back watching this current event. ...with interest.

Re: Who's Paying for Shipping?

Jacie — Sun, 17 Oct 2021 17:18:28 GMT

@goldensrbest I'm with you! I try to purchase Made in the USA when I can!

However my new American made vehicle is being held up because mining of silica has been banned, so the computer chips made in the Silicon Valley can't be obtained! I swear I will cancel this car if they have to get the chip from overseas!

Re: Who's Paying for Shipping?

Foxxee — Sun, 17 Oct 2021 17:26:31 GMT

Yes, and companies leasing cargo ships are paying $100,000 a day and before this mess, $20,000 a day. That doesn't cover fuel and taxes.

Just learned, but should have been on top of it, CA passed an EPA law some years ago requiring all trucks operating within and entering the state must pass that law. None of the other states have this EPA requirement.

Evidently, it's very expensive for independent truckers and small trucking companies to get their trucks ready. Only 50% of all trucks that could pick up cargo in CA currently pass.

Walmart, Amazon, Lowes, Home Depot and other big companies decided not to use California ports. They are going through the Panama Canal to Houston, Savannah, and East coast ports to bypass California.

It takes longer, but they are getting their orders sooner than through California. Not enough trucks picking up cargo in California has become a huge obstacle.

For those wanting to know more about it, there are articles as far back as 2012 that explain California's EPA standards and current articles explaining how this has thrown a monkey wrench in deliveries throughout the country.

Re: Who's Paying for Shipping?

SilleeMee — Sun, 17 Oct 2021 17:32:33 GMT

Time is money and the longer those boats sit out there in the ocean, the more money it will cost us. Think of it as interest you pay on a loan...same kind of thing going on there.

The global supply crisis is like a relay race but it doesn't matter how fast a runner can go if the baton is not there. The the race comes to a halt.

Re: Who's Paying for Shipping?

skatting44 — Sun, 17 Oct 2021 17:27:34 GMT

Been to 2 local Home Goods a couple of times this month . Have noticed they can't keep furniture . It's a buying freenzy . As soon as it comes in it's sold. If interested you'd better pay for it that same day. Noticed Barcaloungers in leather , sofa's , dining rooms sets , entertainment centers all marked paid waiting for customers to pick up.

Re: Who's Paying for Shipping?

Kachina624 — Sun, 17 Oct 2021 17:29:07 GMT

@Foxxee You always report such good factual information about this situation.

Re: Who's Paying for Shipping?

proudlyfromNJ — Sun, 17 Oct 2021 17:33:14 GMT

@Jacie wrote:
@goldensrbest I'm with you! I try to purchase Made in the USA when I can!

However my new American made vehicle is being held up because mining of silica has been banned, so the computer chips made in the Silicon Valley can't be obtained! I swear I will cancel this car if they have to get the chip from overseas!

@Jacie I thought a number of foreign parts are used in American made cars.

Re: Who's Paying for Shipping?

Foxxee — Sun, 17 Oct 2021 17:36:21 GMT

@Kachina624 wrote:
@Foxxee You always report such good factual information about this situation.

@Kachina624

Thank you! What a nice thing to say.

Re: Who's Paying for Shipping?

Jacie — Sun, 17 Oct 2021 17:54:52 GMT

@proudlyfromNJ I am fully aware that cars have parts from overseas. My point here is that the part I need is made in California, and that's the hold up. Silica has been banned from being mined in the USA, and that is what is needed for the comuter chip to complete the build on my vehicle.

Re: Who's Paying for Shipping?

hckynut — Sun, 17 Oct 2021 17:55:01 GMT

(thread title)

@Kachina624

I order probably 95% of what I buy from Amazon, and as a prime member, shipping is free. Friday I ordered several non-perishable items, for the same price as the last time I bought them a few months ago.The price, per item, was exactly the same. Low and behold they will be delivered today, Sunday. In this case it is not me paying the shipping.

When demand is greater than availability it's always the same result. With almost all sources of delivery requiring some form of fossil fuel? Did we expect the outcome to be different? I am reminded every time I fill our gas tank, or even my gas bucket for my mower.

hckynut

Re: Who's Paying for Shipping?

hckynut — Sun, 17 Oct 2021 18:01:55 GMT

@goldensrbest wrote:
Well, i don't know if this will get better for now, if only people would had not wanted to pay extra for usa made, and companies went out of business.

@goldensrbest

"if only" . never mind, just remembered you do not want me to reply. sorry

hckynut

Re: Who's Paying for Shipping?

Kachina624 — Sun, 17 Oct 2021 18:05:35 GMT

@hckynut I do the same thing, placing several orders a week with Amazon, although it usually takes about 4 days to get them. I noticed in the past week they've stepped up their game and they're coming faster. I wondered if they were at the meeting of shippers with The President? Maybe that has something to do with it.

Re: Who's Paying for Shipping?

catmama — Sun, 17 Oct 2021 18:09:32 GMT

One of the parts of the delays at the ports of Los Angeles and others along the West Coast that isn't being mentioned is Customs. All of those containers have to be inspected by Customs prior to being released and I'm wondering if they are stepping up their inspections. I heard that President Biden has ordered the ports to run 24/7 and that he had a round table discussion with several people from the industries and agencies involved but no mention of anyone from Customs.

My husband retired from the freight forwarding business and his area was overseas shipping. He would often tell me how frustrating it was to work with Customs because they only operated from 8-5 M-F and often times it would take several days for some of his shipments to get off the boat. His customers didn't understand that Customs was often the barrier to quicker release.

Re: Who's Paying for Shipping?

PhilaLady1 — Sun, 17 Oct 2021 18:51:28 GMT

@catmama wrote:

My husband retired from the freight forwarding business and his area was overseas shipping. He would often tell me how frustrating it was to work with Customs because they only operated from 8-5 M-F and often times it would take several days for some of his shipments to get off the boat. His customers didn't understand that Customs was often the barrier to quicker release.

Hi - I retired at the end of July 2021 from freight forwarding. 31 years in the business. Over time, the job title description changed from freight forwarder to ocean export logistics coordinator. I hated my job but I stuck with it because it paid the bills. Anyone involved easily saw the current problem coming a long time ago. My question is, what I do not understand, and maybe you or your husband knows the answer.... shippers enter into contracts with ocean carriers, agreeing to ship X amount of container for X amount of dollars, for the length of the contract until it comes up for renewal, usually on a yearly basis. So how is the cost of shipping per TEU going up by so many thousands of dollars if the cost is locked in to a contract? Are the ocean carriers breaking contracts? Thanks !

Re: Who's Paying for Shipping?

catmama — Sun, 17 Oct 2021 19:32:01 GMT

@PhilaLady1

He's been retired for several years but he did mention that he had several carriers he could work with when scheduling containers to be transported. He doesn't know if carriers now have contracts with shippers, so sorry can't help there.

Re: Who's Paying for Shipping?

PhilaLady1 — Sun, 17 Oct 2021 19:40:55 GMT

@catmama wrote:
@PhilaLady1

He's been retired for several years but he did mention that he had several carriers he could work with when scheduling containers to be transported. He doesn't know if carriers now have contracts with shippers, so sorry can't help there.

Thanks !

Re: Who's Paying for Shipping?

CelticCrafter — Sun, 17 Oct 2021 19:47:23 GMT

@fthunt wrote:
I believe it.....but our situation has caused a bonanza for some industries to take full advantage to increase costs. Charge whatever the traffic will allow or accept.

Not needing a thing..... except for a half tank of gasoline to top my tank...I'm sitting back watching this current event. ...with interest.

Eventually you will be needing something more than a half tank of gas.

Groceries are the one thing that come to mind.

Re: Who's Paying for Shipping?

fthunt — Mon, 18 Oct 2021 00:26:15 GMT

@CelticCrafter Clothes - appliances - transportation needs - I'm covered

I'll need fresh food items like eggs - over time

Items that freeze well - have 6 ft freezer plus refrigerator unit stuffed to the point of no available space - containing beef - pork - chicken - seafood - veggies - bread - pasta frozen & dry. Pantry stocked shelves with can goods & paper products.

Etc.......................Living in the Northeast you just prepare for winter - blizzard or not.