Friday, October 22, 2021

Snarled shipping lanes could mean empty shelves come holiday shopping time

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A storm of spectacular events around the world leads to shipping routes on the high seas, and this could mean coal at Christmas time.

Pandemic locks, followed by job openings and sudden changes in the weather, increased the need to integrate global supply lines from food and fashion to beverages and trays.

Some retailers want to take matters into their own hands.

Craftsman Jo-Ann Stores is implementing a plan to reduce astronomical shipping costs by buying his ship, The Post reports. Now a container full of goods will cost a retailer $ 30,000 from Asia, compared to $ 3,000 before the pandemic, CEO Wade Mikelon told The Post.

That’s why Miquelon says his 850 stores could be added to the number of retailers looking to secure their cargo ships.

Miquelon said such a move could take the form of buying a ship – perhaps with another group of vendors – or renting a ship.

Shipping containers abound in U.S. ports, including Los Angeles. The lack of a truck driver doesn’t help at all, and it can make it difficult to get things on the shelves.

“When it comes to a sharp rise in shipping costs, ‘these options are being considered in the long run to mitigate some of the risk we face,'” he said. He declined to comment on possible options for buying or renting space on the ship.

Astronomical cargo calculations belong only to Jo-Ann. Delivery costs and long delays at ports have devastated other vendors as well.

This summer, several major retailers, such as Home Depot, Walmart and Ikea, began renting out private ships just to ship their goods overseas.

Exterior of a Jo-Ann fabric and craft store
JoAnn says the stores could take a sharp rise in shipping costs and take over the issue of buying or renting space on their cargo liner.

According to the Southern California Maritime Exchange, more than 60 container vessels carrying billions of dollars worth of clothing, furniture and electronics have been stranded outside the Los Angeles and Long Beach terminals.

Prior to the pandemic, it was unusual for several ships to be on the waiting line at U.S. Port 1, which handles more than half of all U.S. imports.

Ninety percent of the world’s trade networks are managed by global maritime networks.

The traditional way of life of U.S. retailers from Asia is frozen due to the resumption of COVID-19 in countries such as Vietnam and Indonesia and power outages in China. Supply noise is driven by an increase in demand as consumers spend more money on goods than they go out, and festive shopping noise is approaching.

Joe-Ann Stores CEO Wade Mikuelon
In an interview with The Post, Joe-Ann Stores CEO Wade Michaelon said shipping containerized goods from Asia would cost $ 30,000 — up to $ 3,000 in normal times.

Burt Flikinger, managing director of retail consulting at Strategic Resources Group, said at least 20-25 per cent of the goods left on the ships would not coincide with the start of the holiday shopping season on Black Friday, November 26th. Want a new video game console or TV for Christmas? You may not get it.

Freight traffic to the port of Los Angeles increased by a record 30% from last year. At the same time, trucks and trains are unable to remove it quickly, leading to loggias, said Port Executive Director Gen Seroka, reflecting growing consumer demand.

“It’s like taking 10 blocks on the highway and splitting them into five,” Seroka said.

The lack of national semi-truck drivers is also not helping. The trade union says there is a shortage of 61,000 drivers in the area.

Logjam can fall into the pockets of consumers: barriers in the supply chain can lead to goods in stock. And Americans freed from a one-year siege are willing to spend.

Even Federal Reserve officials are paying attention.

“We have consumers who are really worried that they’re going to hit the wall of supply constraints — and, of course, prices are going up,” San Francisco Fed Chief Mary Daley told CBS’s Face the Nation. On Sunday. Recent readings on inflation hit a 30-year high — prices rose 3.6 percent from a year earlier.

“Maybe the weekend could put a little pressure on product prices,” he said, “and we need to keep doing that.”

– with post cables.

Cargo ships waiting to enter the port of Los Angeles
Cargo ships are waiting to enter the port of Los Angeles, where up to 70 ships have been detained for access to the port in recent weeks.

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