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

Zebra Technologies chief govt Anders Gustafsson instructed 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 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 however it actually was down,” Gustafsson mentioned in an interview on “Mad Money.”

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

“We’re placing every little thing principally on air freight versus placing it in a container on ocean [freight], which clearly could be less expensive, however as we undergo the yr, we anticipate that we are going to get higher provide and we will put extra issues on ocean,” he mentioned. 

Shares of Zebra rose 6.36% on Friday.

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