If you’re in the United States, you likely feel the impact of logjams in the global supply chain. Supermarket shelves take longer to be restocked, and you worry that the Christmas gifts you ordered online may not arrive in time. The higher price tags of the things you buy also partially reflect record-high shipping costs.
In August, Steve Saxon, McKinsey’s Shenzhen-based partner leading the Travel, Logistics & Infrastructure Practice in China, and Jaana Remes, a partner with the McKinsey Global Institute, explained why shipping costs between China and Europe were six times higher than in 2019.
In this video discussion, Saxon and Remes are back to explain why costs remain stubbornly elevated and forecast a possible scenario for the normalization of shipping rates.
Watch the video to learn the following:
- When shipping rates normalize and at what levels
- Potential challenges that may prolong record-high shipping costs
- How shifts in consumption patterns in the United States and the Chinese New Year next February may affect shipping rates
- What the industry can expect when it comes to disruption in the future and what stakeholders may do in response