Supply chain issues plague American businesses. An expert explains how it affects you
ORLANDO, Florida – The country may be recovering from the economic impacts of the pandemic, but now new issues with shipping container backlogs in the country’s ports, labor shortages and supply chain issues lead to higher prices.
Families across the country are having to change their budgets as the prices of items ranging from gasoline and groceries to items needed for manufacturing have increased.
“The backlog essentially affects the time it takes consumers to receive products for retailers to first receive the products to put on the shelves,” said Axel Stock, associate professor of marketing at UCF.
Stock said prices tend to go up when a product cannot be delivered.
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“In addition to the problem in the ports, there is also a shortage of labor (like) truck drivers. Even when ships can unload, there is no guarantee that… products can be immediately shipped to their destinations, ”Stock said.
Stock said one way for consumers to prepare for supply chain issues is to buy early when products are available. With the holidays approaching, he said it is better to start shopping for items for your holiday dinners and gift shopping now rather than wait.
However, he warned buyers not to panic.
According to the United States Bureau of Labor Statistics, consumer prices are at their highest level in 13 years. A September retail report from the USDA said the average price of a gallon of milk is now $ 3.68, about 36 cents more than last year. Gas is up 42%; the cost of energy has increased by 25 percent and in grocery stores many items are out of stock.
“You’ve seen the footage of all the ships docked off the coasts of various cities in the United States where there is a big traffic jam, that of course has an impact on what we see in terms of what we see on the shelves in our stores, ”said the governor. Ron DeSantis said Monday from the Jacksonville Port Authority regarding backlog issues at ports in several cities across the country.
“We in Florida have the ability to help alleviate these bottlenecks and improve supply chain problems, in part because we have a long commitment to reliable, modern and accessible port facilities,” said DeSantis said. “Our seaports are used to working around the clock, they are used to moving cargo for American families, farmers and businesses, and we think this is a great solution given our ability to resolve some of the issues. problems you see in other parts of the country. “
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