![]() 31, according to Refinitiv data and shipping records.ĭuring that voyage, Walmart circumvented the shortage of 40-foot containers typically used for global shipping by switching to bigger 53-foot containers that are almost exclusively used to move goods by truck and train within the United States. It got stuck in a queue outside the port before it bypassed clogged terminals and unloaded its goods at a separately operated bulk cargo dock nearby on Aug. The Flying Buttress, for example, entered Los Angeles waters on Aug. "It's like taking 10 lanes of freeway traffic and squeezing them into five," Seroka said.Ĭhartered ships that offer valuable cargo space and can sidestep the container terminals play a critical role in this second pandemic holiday season, particularly for time-sensitive goods like Christmas sweaters that won't sell if they arrive too late. Trucks and trains can't remove it fast enough, leading to logjams, said the port's Executive Director Gene Seroka, reflecting the surge in consumer demand. Incoming cargo at the Port of Los Angeles is up 30% from last year's record levels. In a typical year, Walmart would have moved those toys from China to Los Angeles in hundreds of 40-foot (12-metre) cargo boxes stacked like colorful Lego bricks on gigantic container vessels that serve multiple customers.īut 2021 is far from typical. The biggest chains are taking matters into their own hands. 26 Black Friday kickoff for the holiday shopping season, a period when retailers make more than a third of their profits. The supply snarls coincide with booming demand as consumers spend more on goods than going out, and the festive shopping frenzy nears.īurt Flickinger, managing director at retail consultancy Strategic Resource Group, said at least 20-25% of the goods stuck on ships were unlikely to make it onto shelves in time for the Nov. ![]() retailers' traditional lifeline from Asia is freezing up due to a resurgence of COVID-19 in countries like Vietnam and Indonesia plus a power-supply crunch in China. Or, as Steve Ferreira of shipping consultancy Ocean Audit describes the escalating concern: "Containergeddon."ĪLSO READ: The night before: 5 ways to navigate the pending holiday gift crunch Other big retail players, such as Target (TGT.N), Home Depot (HD.N), Costco (COST.O) and Dollar Tree (DLTR.O), have said they are chartering ships to deal with the pandemic-driven slowdown of sea networks that handle 90% of the world's trade. port complex, which handles more than half of all American imports. Pre-pandemic, it was unusual for more than one ship to be in the waiting lane at the No. More than 60 container ships carrying clothing, furniture and electronics worth billions of dollars are stuck outside Los Angeles and Long Beach terminals, waiting to unload, according to the Marine Exchange of Southern California. The aim is to bypass log-jammed ports and secure scarce ship space at a time when COVID-19, as well as U.S.-China trade ructions, equipment shortages and extreme weather, have exposed the fragility of the globe-spanning supply lines we use for everything from food and fashion to drinks and diapers.ĪLSO READ: How global supply chains are falling out of fashion ![]() executive vice president of supply-chain operations at Walmart, which has hired a number of vessels this year. "Chartering vessels is just one example of investments we've made to move products as quickly as possible," said Joe Metzger, U.S. Register now for FREE unlimited access to RegisterĪLSO READ: Amid supply chain snarls, retailers pitch early holiday shopping
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |