NRF urges US govt to address port congestion challenges
15 Jun 21 2 min read
“The supply chain disruption issues, especially the congestion affecting our key maritime ports, are causing significant challenges for America’s retailers. The congestion issues have not only added days and weeks to our supply chains but have led to inventory shortages impacting our ability to serve our customers. In addition, these delays have added significant transportation and warehousing costs for retailers,” NRF president and CEO Matthew Shay said in the letter sent to the White House.
As the largest private-sector employer in the US, retailers depend on US ports and other transportation infrastructure to deliver billions of dollars’ worth of goods and products to consumers every day. Last week, NRF revised its annual retail sales forecast to grow between 10.5 per cent and 13.5 per cent to more than $4.44 trillion in 2021 as the economic recovery accelerates.
Although consumer demand continues to grow, evidenced by imports during the busiest April on record at the largest US retail container ports, the supply chain challenges remain significant. In a recent survey of NRF member companies on the congestion situation, over 97 per cent of retailers surveyed said they have been impacted by port and shipping delays.
“In many instances retailers will absorb these costs and not pass them along to consumers. However, many smaller retailers may have no choice but to pass along these costs, especially as they face other challenges with reopening their businesses,” Shay said.
Fibre2Fashion News Desk (RKS)
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