Retailers and holiday shoppers to be affected by the global shipping container crisis
In a recent news report published by CNN, consumer goods producers are taking drastic steps to meet demand including changing where products are made and moving them by plane instead of boat. However, despite the contingency plans and alternative delivery strategies, these small enterprises are missing out on sales due to simply not having enough goods.
Following the current shipping container crisis which hit the world in 2020, raw materials and goods are reaching producers at a slower rate which impedes production and negatively impacts purchasers, especially closer towards the holiday season.
According to S&P Global Panjiva to CNN, retailers are struggling to replenish inventory as fast as they’re selling, let alone prepare for holiday demand.
Edward Rosenfeld, Chief Executive Officer of Steven Madden, Ltd, a publicly traded shoe and fashion design company based in Long Island City, New York, announced during an earnings call, “in terms of supply chain… we could talk about this all day. There are challenges throughout the globe. There is port congestion, both in the US and China. There are Covid outbreaks at factories. There are challenges getting containers. We could go on and on.”
Kasper Rorsted, Chief Executive Officer of Adidas also mentioned that the sportswear company will be unable to meet the “strong demand” for its products in the second half of the year due to the shutdowns, despite switching production to other regions.
“Supply chain difficulties have been leading to significant delays and additional logistics costs, particularly as we have been making more use of airfreight,” he said to CNN.
Bob Biesterfeld, Chief Executive Officer of C.H. Robinson, one of the world’s largest logistics firms mentions that shoppers should also brace for longer-than-normal delivery times and may need to have several different gift ideas up their sleeves.
“As we’ve been forecasting for months, shoppers are going to see some bare shelves at the holidays. And if you buy most of your presents online, get it done early. Delivery time mat be four to six weeks,” he concludes.
Read the full article by CNN Business here.