Business

Zebra CEO says shipping costs have come down and component shortages continue to be a deterrent

Zebra Technologies chief executive Anders Gustafsson told CNBC’s Jim Cramer on Friday that despite lower transportation costs, shortages of components such as semiconductor chips continue to cause problems.

“Over the past two years, we have seen a kind of migration of some problems. Now it all started with the problem we were talking about was freight and the costs we incurred have decreased. It was somewhat better. in the first quarter than in the fourth – our cost per kilogram has decreased, not to the level that it was before the pandemic, but definitely decreased, ”Gustafsson said in an interview with Mad Money.

He added that the company expects to maintain these levels until the end of the year.

However, “component shortages, semiconductor shortages, and now we’re spending a lot more money securing long lead times and getting them to our facilities faster and then getting the finished product to our customers,” the CEO said.

And while the company has had to pay for more expensive shipping options due to supply chain delays, Gustafsson says it expects improvements later in the year.

“We ship everything mostly by air freight, not containerized sea freight. [freight]which would obviously be a lot cheaper, but over the course of the year we expect to have more supplies and be able to send more things to the ocean,” he said.

Zebra shares rose 6.36% on Friday.

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