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

Zebra Technologies chief government 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 past two years, we’ve seen kind of a migration of some of the issues. Now, it started off with freight being the issue that we talked about, the cost that we incurred, that has moderated. It was somewhat better in Q1 than it was in Q4 – our cost per kilo was coming down, not to what it was pre-pandemic but it certainly was down,” Gustafsson stated in an interview on “Mad Money.”

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

Yet, “component shortages, semiconductor shortages, and we’re now spending a lot more money on securing long-lead time parts and having to expedite them to our facilities and then expediting the finished goods to our customers,” 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 yr, in accordance with Gustafsson.

“We are putting everything basically on air freight versus putting it in a container on ocean [freight], which obviously would be much cheaper, but as we go through the year, we expect that we will get better supply and we will be able to put more things on ocean,” he stated. 

Shares of Zebra rose 6.36% on Friday.

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