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Logistics troubles on sea trade routes affect US retailers
04 Mar '21
2 min read
Pic: Shutterstock
US corporations of all sizes and types are reporting logistics struggles, especially on trans-Pacific trade routes. The issues can potentially disrupt inventories if they continue much longer. The supply strains, compounded by shortages of shipping containers, are beginning to hit operations of firms. The problems are expected to spill into the next quarter.
Added to the routine problems are incidents where containers full of goods in cargo ships went overboard in rough seas, and were pushed to the ocean floor.
Crocs Inc. said getting shipped to customers is really challenging right now due to logistics issues. Shoe-maker Wolverine World Wide Inc. said $20 million in sales would shift from the first to the second quarter because of the backlogs. Steven Madden Ltd. said supply chain disruptions cut the footwear company’s first-quarter sales expectation by $30 million, a top global newswire reported.
A number of container ships keep waiting to enter the neighboring ports of Los Angeles and Long Beach, with an average wait of more than a week.
In the meantime, some companies are paying premiums to send goods by air, substituting products on shelves and trying to renegotiate arrangements with shippers.
Added to the routine problems are incidents where containers full of goods in cargo ships went overboard in rough seas, and were pushed to the ocean floor.
Crocs Inc. said getting shipped to customers is really challenging right now due to logistics issues. Shoe-maker Wolverine World Wide Inc. said $20 million in sales would shift from the first to the second quarter because of the backlogs. Steven Madden Ltd. said supply chain disruptions cut the footwear company’s first-quarter sales expectation by $30 million, a top global newswire reported.
A number of container ships keep waiting to enter the neighboring ports of Los Angeles and Long Beach, with an average wait of more than a week.
In the meantime, some companies are paying premiums to send goods by air, substituting products on shelves and trying to renegotiate arrangements with shippers.
Fibre2Fashion News Desk (DS)
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