What leads to the longer delivery and higher cost

Nowadays, the longer deliver time and increasing cost has become the great concern among our customers.

Here comes some major factors:

About the longer delivery time:
There are over 2,500 patients diagnosed with COVID-19 and nearly 20,000 asymptomatic patients in Shanghai every day. Affected by COVID-19 epidemic, Shanghai port has even been shutdown for several days. Most containers has to be transferred to other ports, like Qingdao, Shenzhen port,etc. This undoubtedly adds the distance of transport. Furthermore, the highway freight volume has shown a cliff-like decline due to suspended expressway services and traffic congestion around roadside testing booths.
So it extends the delivery time which is beyond the original expectation.
About the increasing cost:
Transportation to other port not only increase the deliver time, but also adds
the freight cost. On the one hand, labor and time costs have increased, due to the block of Shanghai port; on the other hand, the implementation of traffic control on the way, leads to an increase in the cost of inter-provincial vehicle bypass.

The increase of cost also comes from higher price of raw materials at home and abroad. For example, raw materials used in the manufacture of lamp posts, such as steel, iron, zinc etc, are of great shortage because they cannot be delivered to factory for processing under such strict traffic control. And Led chip, driver, aluminium are also consumed during the production of the Led light lamp. Since they are limited, it’s no wonder that their prices are in the rise.

Due to the international conflict between Russia and Ukraine, raw material prices in overseas markets have surged amid the panic of impacted supplies of raw materials, as they are among the world’s major suppliers of metal commodities. Therefore, the increased prices, have led to higher domestic production costs, which triggered an upward price trend in the domestic market in China.

Zenith Lighting is Professional manufacturer of All kinds LED street light, if you have any inquiry or project, pls do not hesitate contact with us.

Email address: sales03@zenith-lighting.com

Post time: Apr-15-2022