AMKBY - Shipping rates expected to stay high in potential profit drag for retail

Opla/E+ via Getty Images UBS says a key takeaway from meetings with shipping industry experts is that supply chain pressures will remain in place for the near term as it pertains to the retail sector. The bottlenecks are linked in part to port disruptions, labor shortages and a lack of available warehouse space to store product. Analyst Michael Lasser: "Even if these issues are solved, the tightness in the market will likely remain elevated due to backlogs from demand outpacing supply for a prolonged period. Plus, peak season is right around the corner (August/September) which will add another wrinkle. This is likely to lead to a continuation of the heightened shipping costs for retailers, for at least in the near term." Container rates will likely continue to be a headwind for retailers into 2022. Looking even further ahead, shipping experts also believe that rates will not see much of a

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Shipping rates expected to stay high in potential profit drag for retail