SAVANNAH, Ga. (WSAV) – It’s the issue that just won’t go away. Rising prices, delayed shipments, and shortages of goods could soon spell trouble ahead of the holiday season.
“Essentially, supply chains are trying to match supply with demand, and when imbalance has happened between supply and demand, these bottlenecks these pinch points will arise. Typically surges, they’ll rise and fall but lately the surge in freight volumes has risen and just persisted at historically high levels,” said Dr. Jerry Burke, Professor of Logistics & Supply Chain Management at Georgia Southern University.
Experts are calling it a global supply chain crisis.
Mass delays of imported goods causing the price of common household items like vanilla extract and the all-important Thanksgiving turkey soaring to almost double what they were just months ago.
“Now you have inflationary pressures because of what’s going on with the economy right now over the last 8 months or so, we can see that prices are going higher. Businesses also see that prices are going higher, so if we want to lock in our cost structure we’re going to buy today what we need tomorrow, what we call forward buying,” explained Dr. Burke.
Burke says this issue effects everything from clothes and electronics, to the needs of businesses to create their products. He expects some of these shortages and delays to last up until Spring 2022.
“We don’t wanna cause any panic buying. I think the volumes that we’re seeing on the import side I think will start to subside right after the holidays, and we’ll get a little bit of a reset button happening sometime in April,” Dr. Burke said.