The Consumer Price Index rose 7 percent throughout 2021, pushing up prices in December at the fastest rate in nearly 40 years, The New York Times reports. Many businesses have seen little improvement in supply chain disruptions as shipments remain stalled in crowded ports and omicron outbreaks leave work crews shorthanded. As a result, prices for consumer goods are steadily rising while demand shows no signs of slowing.
Delays and price increases on U.S. shipments can also be traced back to infrastructure facilities that have been strained by decades of underinvestment, the consequences of which are now laid bare. Though the United States is actively working to keep supply chains up and running, international shipments could be blocked by more rigid COVID-19 restrictions in countries with zero-tolerance strategies like China.
The price to ship a 40-foot container from Asia to the U.S. West coast hit $14,572 this week, down slightly from a peak of more than $20,000 in September, but still nearly a tenfold increase from two years ago, according to data from Freightos Group.
The group’s data also showed that delivery times for ocean shipments from China to the United States stretched to a record 80 days in December, up 85 percent from 2019.
Judah Levine, head of research for Freightos Group, said delays were still a reality for American importers, because of still-surging demand and continued congestion at the ports of Los Angeles and Long Beach, the gateway for many goods from Asia. Recent flight cancellations due to the omicron surge would further restrict cargo capacity and help keep rates up, he said.
Related Stories
NAHB
NAHB Chairman’s Message: Biden Housing Plan Falls Short
While the Biden administration’s Housing Supply Action Plan pushes housing affordability to the top of the nation’s economic agenda, it lacks adequate supply chain solutions and fails to resolve other underlying challenges constraining housing production
New-Construction Projects
Despite Rising Costs, Home Builders Are Keeping a Steady Pace
Supply chain bottlenecks and inflated materials prices have become status quo for home builders throughout the pandemic, but that isn't slowing the pace of new housing construction
Building Materials
As Materials Prices Rise, One Phoenix-Based Company Is Building Homes With Foam
Rather than waiting for long-delayed lumber imports or turning to a short supply of pricey materials, Phoenix-based Strata International Group is building houses with foam
