The growth spurt in consumer spending that began last summer carried over into 2021, with knock-on effects to supply chains. Freight demand led to hikes in transportation prices and warehouse rents, alongside dips in capacity. 

And near the end of the quarter, a global disruption occurred: The Ever Given became lodged in the Suez Canal. 

The charts below illustrate the story of supply chains in Q1 2021.

E-commerce boomed

Online orders continued their upward trajectory, as consumers kept the focus on goods instead of services, and federal stimulus incentivized buying.

As a result, inventories compared to sales dropped, due to high demand. And demand — along with prices — for corrugated materials reached new highs as supply chains sought packaging for e-commerce orders.

Read more:

• The omnichannel age is here — and it's expensive
• Warehouse operators seek nimble forklifts in the e-commerce era
• 6 charts show how a pandemic upended retail supply chains

Freight demand and prices soared

Continued spending rippled to freight markets. Demand for container shipping led to strained capacity and rising spot rates.

Trucking was already grappling with tight capacity, as drivers sought more home time during the pandemic and licensing schools were constrained by COVID-19 restrictions. The combination of a short supply of drivers and elevated demand squeezed capacity and drove up rates.

Read more:

• A tumultuous year of ocean shipping prompts a rethink of contracts
• Congested West Coast ports bring the heat to TL spot rates
• Cascading effects of Texas winter storm bump up spot rates

Demand squeezes the warehousing market

The growth of e-commerce created more demand for warehouse space, reflected in dropping vacancies and rising rental rates across the U.S.

Read more:

• How the pandemic drove retailers to on-demand warehousing
• COVID-19 changed the stakes for e-commerce. Do fulfillment networks need to change too?

A ship blocked the Suez Canal

Ever Given was lodged in the canal for nearly a week, blocking other vessels from passing through the major trade artery en route to Asia, Europe and other destinations.

It is still too early to know all the effects on capacity and cargo that the blockage will have on ocean freight markets. Some European ports have prepared for an influx of container ships and possible congestion.

Read more:

• Ever Given and the Suez Canal: A list of affected ships and what delays mean for shippers
• Timeline: How the Suez Canal blockage unfolded across supply chains
• Ever Given, general average and why shippers will share the costs of a ship's rescue