Why did costs for shipping containers increase so sharply during the pandemic? Check all that apply. Companies were ordering more goods to meet increased demand, resulting in increased volume of shipped goods. Containers were scarce since they were often stuck in locations that did not have cargo to send back to Asia, and demand for shipping was intense. Container companies increased prices to take advantage of pandemic lulls. O Increased demand of digital goods such as video games. In the US, incoming ships overwhelmed the dock capacity and so shipping containers were "trapped" on loaded ships.
Why did costs for shipping containers increase so sharply during the pandemic? Check all that apply. Companies were ordering more goods to meet increased demand, resulting in increased volume of shipped goods. Containers were scarce since they were often stuck in locations that did not have cargo to send back to Asia, and demand for shipping was intense. Container companies increased prices to take advantage of pandemic lulls. O Increased demand of digital goods such as video games. In the US, incoming ships overwhelmed the dock capacity and so shipping containers were "trapped" on loaded ships.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Why did costs for shipping containers increase
so sharply during the pandemic? Check all that
apply.
Companies were ordering more goods to meet
increased demand, resulting in increased volume
of shipped goods.
O Containers were scarce since they were often
stuck in locations that did not have cargo to send
back to Asia, and demand for shipping was
intense.
O Container companies increased prices to take
advantage of pandemic lulls.
Increased demand of digital goods such as video
games.
In the US, incoming ships overwhelmed the dock
capacity and so shipping containers were
"trapped" on loaded ships.
Expert Solution
Step 1
Solution:
The coronavirus pandemic caused a disruption in the supply chains and it lead to shortages and a sharp increase in the costs for shipping containers. The shortage of container was a depletion of container inventory due to the pandemic-related inefficiencies.
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