Zvi Schreiber

It's interesting.

There's been a combination of factors.

First of all, retail remains strong.

Even as people spend less money on restaurants and services, they're spending more money on goods.

So retail remains strong.

And then you've had these various events.

You had the Suez Canal blockage that created a lot of stress on a system which was already at full capacity.

Just in the last couple of weeks, you've had a major COVID outbreak at the Yantian Port in South China,

25% of the goods that ship from China to the US ship out of Yantian.

And that port is down, its capacity is down 70% because there was an outbreak of COVID and staff got sent home.

And there's a lot of ripple effects because the whole, the ships were full anyway, and then you get the Suez Canal blockage, you get Yantian outbreak.

And then the ripple effects because there are something like 70 ships roughly anchored outside Yantian waiting to come into port.

Mm-hmm.

That means that you've got tens of thousands of containers which are out of circulation, so now there's a shortage of physical containers, the metal boxes.

So the whole system is very full.

And then when you have more disruptions, they just can't recover and the prices skyrocket.

And as you're seeing, fbx.fredos.com is really where the industry tracks all of that price because we have more data than anyone else about what's happening in the pricing.

And this will impact, just to be clear to your listeners, this is a big increase, big enough that it will impact the price of goods on the shelf this summer.

Yes, it is.

Yeah, this is definitely a factor of inflation.