With the economic activity being very limited in the US and UK, demand is low for goods and services. Additionally, the cost of shipping has jumped significantly. For example, before the pandemic, shipping to the UK from China was a mere 2,000 pounds now research suggest it has skyrocketed to 10,000.
Why Shipping cost have skyrocketed since the pandemic?
Low cost manufacturing hubs across Africa and South Asia are reportedly vying to supply high levels of demand for consumer goods in the Us, meaning that containers are increasingly stretched across competing supply chains.