(November 2021) – Greetings Supply Chain Managers:

I don't want to put a damper on your hopes for any immediate resolutions to our shared struggles, especially heading into the weekend. However, in an effort to keep you informed, I felt it would be pertinent and informative to share with you a notice we just received from one of our supply partners (whom shall remain unnamed). This notification is not the first of its kind, and I'm sure it will not be the last. However, it is the most recent. So hang in there. We will somehow work through this together, just as we have done over the past 18 months.

We believe that proactive, open communication is key to navigating the unprecedented challenges we are all facing related to the ongoing global supply chain issues.

The congestion at U.S. ports is the worst in history. At Long Beach alone, there are more than 75+ ships anchored waiting to offload. This congestion equates to more than 800,000 shipping containers not being offloaded and; therefore, will not be on schedule to their next destination. Record surges in demand for products are driving the U.S. congestion and shortage of shipping containers at Chinese ports. If you look at the global impact, you can begin to understand the magnitude and cause of the extended transit times and significant cost increases being experienced across products in all markets.

The ocean rates continue to climb. The impact is staggering, with some rates as high as $30,000 for a 40' container. In some instances, the freight cost can be equal to or higher than the cost of goods on the container.

This is just another hurdle Supply Chain Professionals may be challenged with ... continued shortages of supplies, the increasing freight costs and possible surcharges that may be added to your invoices.

Keep communications open with your vendors, physicians, clinical and nursing staff and administration on the availability of supplies and all costs in procuring them. You have supported your facilities over the last 18+ months through this pandemic and have earned the respect of your peers.
--Larry Wenthe