Zebra CEO says freight prices have moderated, element shortages nonetheless a headwind

Zebra Technologies CEO discusses freight costs, semiconductor chip shortage

Zebra Applied sciences chief govt Anders Gustafsson advised CNBC’s Jim Cramer on Friday that whereas the corporate has seen freight prices come down, shortages of parts like semiconductor chips proceed to trigger points.

“Over the previous two years, we have seen form of a migration of a number of the points. Now, it began off with freight being the problem that we talked about, the price that we incurred, that has moderated. It was considerably higher in Q1 than it was in This fall – our price per kilo was coming down, to not what it was pre-pandemic nevertheless it definitely was down,” Gustafsson stated in an interview on “Mad Cash.”

He added that the corporate is forecasting a maintain at these ranges for the remainder of the 12 months.

But, “element shortages, semiconductor shortages, and we’re now spending much more cash on securing long-lead time components and having to expedite them to our amenities after which expediting the completed items to our clients,” the CEO stated.

And whereas the corporate has needed to pay for dearer delivery choices because of the availability chain delays, it expects to see enchancment later within the 12 months, in line with Gustafsson.

“We’re placing the whole lot principally on air freight versus placing it in a container on ocean [freight], which clearly can be less expensive, however as we undergo the 12 months, we anticipate that we’ll get higher provide and we can put extra issues on ocean,” he stated. 

Shares of Zebra rose 6.36% on Friday.

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