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

Zebra Applied sciences chief government Anders Gustafsson advised 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 a few of the points. Now, it began off with freight being the problem 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 price per kilo was coming down, to not what it was pre-pandemic however it definitely was down,” Gustafsson mentioned in an interview on “Mad Cash.”

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

But, “part 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 costlier transport choices because of the availability chain delays, it expects to see enchancment later within the yr, in line with Gustafsson.

“We’re placing all the pieces principally on air freight versus placing it in a container on ocean [freight], which clearly can be less expensive, however as we undergo the yr, 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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This text was initially printed by cnbc.com. Learn the unique article right here.

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