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 government Anders Gustafsson informed CNBC’s Jim Cramer on Friday that whereas the corporate has seen freight prices come down, shortages of elements like semiconductor chips proceed to trigger points.

“Over the previous two years, we have seen sort of a migration of among the points. Now, it began off with freight being the difficulty that we talked about, the associated fee that we incurred, that has moderated. It was considerably higher in Q1 than it was in This fall – our value per kilo was coming down, to not what it was pre-pandemic however it actually was down,” Gustafsson mentioned in an interview on “Mad Cash.”

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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 prospects,” the CEO mentioned.

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

“We’re placing every thing mainly 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 count on that we’ll get higher provide and we can put extra issues on ocean,” he mentioned. 

Shares of Zebra rose 6.36% on Friday.

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