Article on Shipping

Why are we talking about Shipping..?

Shipping is usually not something we as consumers talk about, it is something we usually take for granted. We order an item, pay for it and have it delivered quite quickly. It is a service that all detail companies offer their customers, of course for a small fee, but which has become a natural part of shopping online, over the last ten years, where online commerce has been integrated into our society. Suddenly something went wrong. The word Shipping or Shipping Rates has become an everyday talk, and a daily news update on all the world’s news channels. Sold out goods, missing products for further processing or production of e.g., cars, televisions, computers, and all other electronic goods. Also, necessary items like food and clothes are a problem to get in the warehouse. You experience more and more companies have more goods than usual in the remaining order, with long delivery times, and not least higher expenses on Shipping, as the rates have increased correspondingly with the demand.

What happened to Shipping under Corona..?

When Covid-19, also known as Corona, hit the world, challenges arose that few could have foreseen. The planes remained on the ground, the Shipping ships remained in the ports, and the demand for many goods went from one day to the next at zero. Companies tried to navigate an unknown market, hoping the crisis would soon subside again. They stocked up to keep production going, but that did not help much. Corona had taken hold and was called “a world pandemic”. The world simply shut down while Covid-19 took off. After shutting down and restrictions, we could gradually start reopening. Now it has too been seen what swells followed the shutdown. Demand increased again, as it again became possible to live a normal life with restaurant visits, concerts, and workplaces which in turn welcomed employees who had long been reserved for homework. So, the wheels picked up again, and the demand for consumer goods took unimaginable heights, which led to unprecedented pressure on the supply chains. The combination of re-establishing the Shipping routes and the high demand for goods equals increasing shipping rates. While most companies are willing to pay more cost to get their goods to the empty shelves, it just is not enough. Warehouses around the world have become empty after non-delivery during the shutdown period, so there has been a collective shortage of goods worldwide.

How does Cigaretpapir.dk experience the Shipping issue..?

We must acknowledge that we are also affected. As some of our production is in Asia, and must be sailed home, we experience delivery times for products, of up to 6 months, under normal circumstances it takes 6 weeks. We notice that our partners also have problems with delivery of goods to us, and therefore we experience goods in backorder, without being able to get a fairly accurate delivery date.

When will Shipping return to normal..?

What should we expect from the future.? Yes, if I just had the ability to be able to see into the glass sphere, I would be able to make a more qualified bid. So, this is an attempt to hit the target in dense fog. I think we will see the market adjust to normal again, but it will take time. Long time. As the supply chains catch up with the long waiting lists in the order books and the stocks get full again, I also think that the demand for goods will return to its normal level as before the Corana, therefore I think the Shipping issues will be phased out in Q4 2022 Until then, we must live with the uncertainty of being able to freely choose the exact item we want. It is exciting to follow how the Shipping will affect Christmas and not least Black Friday in 2021.