Business

Zebra CEO says freight costs adjusted, component shortages remain a breeze

Zebra technology CEO Anders Gustafsson told CNBC’s Jim Cramer on Friday that although the company has seen its freight costs drop, shortages of components like semiconductor chips continue to plague out problem.

“Over the last two years we’ve seen the migration of a number of issues. Now it starts with freight being the issue we’ve been talking about, the cost that we have to pay. It was partly better in Q1 than in Q4 – our price per kilogram is going down, not before the pandemic but certainly down,” Gustafsson said in an interview. above”Crazy money. “

He added that the company is forecasting to hold at these levels for the rest of the year.

However, “there’s a component shortage, there’s a shortage of semiconductors and we’re now spending more money to ensure parts have a long life and have to get them to our facility and then ship them.” finished goods to customers,” said the CEO.

And although the company has had to pay for more expensive shipping options due to supply chain delays, it expects to see an improvement later this year, according to Gustafsson.

“We’re taking everything basically as air freight versus putting it in a container on the ocean [freight]Obviously it’s going to be much cheaper, but as we go through this year, we expect that we’ll get a better supply and we’ll be able to put more stuff into the ocean,” he said.

Shares of Zebra rose 6.36% on Friday.

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