https://www.freightwaves.com/news/why-is-air-cargo-suddenly-more-affordable-compared-to-ocean-shipping
Air cargo prices have jumped 2x since the pandemic started. But ocean shipping has jumped 10x in some cases.
I can confirm with our own experience that shipping prices - both international and domestic - have been zooming.
The global supply chain is going to shit because of this. More than nationalism, this is what is going to drive initiatives like Make in India. Nobody wants their cost of goods dominated by, of all people, shipping companies.
However, if all Make in India entails is assembly in India, like what is happening with the iPhone, then shipping costs will continue to be the same. In fact (and again, speaking from our own experience) shipping electronics components costs more than shipping finished goods.
I suppose that logic doesn't apply to high weight/volume low value items such as white goods and automotive parts.
There is an opportunity here, but I don't know if our policy makers are aware of it. The longer this crisis goes on, the more sense it makes for folks to be manufacturing closer to their customers. In fact it is already making sense to manufacture at multiple locations in India, which is what we have begun doing.
Air cargo prices have jumped 2x since the pandemic started. But ocean shipping has jumped 10x in some cases.
I can confirm with our own experience that shipping prices - both international and domestic - have been zooming.
The global supply chain is going to shit because of this. More than nationalism, this is what is going to drive initiatives like Make in India. Nobody wants their cost of goods dominated by, of all people, shipping companies.
However, if all Make in India entails is assembly in India, like what is happening with the iPhone, then shipping costs will continue to be the same. In fact (and again, speaking from our own experience) shipping electronics components costs more than shipping finished goods.
I suppose that logic doesn't apply to high weight/volume low value items such as white goods and automotive parts.
There is an opportunity here, but I don't know if our policy makers are aware of it. The longer this crisis goes on, the more sense it makes for folks to be manufacturing closer to their customers. In fact it is already making sense to manufacture at multiple locations in India, which is what we have begun doing.