The COVID-19 Pandemic is causing a lot of worry and frustration for customers needing products NOW! There is a great strain on manpower causing uncertainty in manufacturing facilities and in the shipping industry. In many cases around the world, entire countries are on lock down. If you are at the mercy of receiving imported goods, the following is how you and your business will be affected. Lastly, JohnPac offers a solution to how you can keep your business going during this unprecedented time.
How lead times are affecting your cost
First, the bad news. There will be longer lead times, and you may not have an exact answer as to how long to expect your items to be produced and shipped. Due to the stay at home orders and factories shuttered around the globe, there of course is a lack of manpower to produce goods. In India, it is estimated that 1.5 million out of 5 million truck drivers are not on the roads delivering goods due to the lock down. This is creating a delay of much needed goods, and you can expect costs to rise based on these troublesome issues due to the Pandemic.
As an example, in Mumbai, transportation services have increased shipping prices by as much as 80%. Surcharges are also being added to goods. For example, Blue Dart has implanted a $25 emergency situation surcharge (ESS), and Air India will increase freight charges by 90% per kilo if it doesn’t have sufficient cargo to carry.
Solution to improve your lead times
With these surcharges adding to your costs and lead times vastly extended, looking into a domestic supply chain has now become inevitable. JohnPac can provide you with solid lead times on your bulk bags, small woven bags, and/or industrial packaging. JohnPac also can circumvent higher delivered freight costs with our own fleet of delivery trucks that deliver regionally. Browse our website and request a quote on the products you rely on to keep your business moving. www.johnpac.com or call 866-916-224