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Transportation problems could hinder deliveries through 2021

| Jul 8, 2021 | Transportation Law |

Since early-2020, business has been impacted by various worldwide challenges. The ongoing situation may be receding, but its lingering impact is causing issues in California and throughout the world. One prominent concern has been delivery delays. For large companies that are expecting shipments, it is not a simple matter of calling the seller for a refund or a new item to be sent, nor is checking online to track the products. Huge cargo ships with massive deliveries being delayed, damaged, delivered to the wrong place or disputes about charges can cause financial and logistical nightmares. It is wise for companies to be prepared to address this as it arises.

Delays at Chinese ports could hamstring deliveries for holiday rush

China is a major source for products and its current circumstances with illness delaying deliveries could be felt through the holiday season. Major ports have experienced congestion adding more turmoil, higher costs and a lack of essential items being delivered on time, if at all. Businesses must calculate the supply chain and be prepared if there is a break in that link. Disruptions will directly impact the bottom line. This is especially worrisome for the holiday season in which consumers and companies will ramp up orders and their needs are more acute.

One Chinese port was completely closed for close to a month. The delays are mounting with retailers being proactive in making their orders to avoid any longer delay for the holidays. During normal times, the shipping business is at its busiest in the third quarter of the year because of the pending holiday spike in sales. Now, that is in jeopardy. Some experts think the delays could extend to summer 2022. There is still the aftermath of the cargo ship getting stuck in Egypt in March. The current troubles exacerbate these concerns.

Companies must be adequately prepared and have assistance

Transportation law in the context of business can be complicated. Delivery and storage are innate aspects of a transportation business. If shipments are delayed, this is just one factor that can bottleneck the entire process. Checking the contract to see if there are ways to mitigate the loss, trying to find solutions to the delays and storage backlog and more is key. An example that shippers and carriers should be aware of is the Carmack Amendment that details how cargo that is lost or damaged is handled. For advice in how to proceed, it is useful to have experienced legal assistance.