Home Nike items COVID-19 lockdowns, overcrowded cargo ports leading to vacation shortages

COVID-19 lockdowns, overcrowded cargo ports leading to vacation shortages


From the COVID-19 pandemic to cargo backups at California ports, there are a few reasons Americans might find holiday shopping difficult this year.

The more transferable delta variant shut down the economy in Asia, including Bangladesh, where many garment factories temporarily closed during the summer. Bangladesh garment factories are part of the second largest garment industry in the world. Since the pandemic began in March 2020, the Bangladesh Garment Manufacturers and Exporters Association estimates that the industry lost $ 3 billion in orders last year.

Then there are the freight backups.

Saving freight is expected to have a far-reaching impact, according to FOX 11 Los Angeles, potentially delaying the shipment of merchandise and other consumer items for the holidays.

RELATED: Experts encourage advance holiday shopping as COVID continues to impact supply chain

Tens of thousands of containers are stranded at the ports of Los Angeles and Long Beach, Calif., The two west coast gateways that carry more than a quarter of all U.S. imports, according to the Wall Street Journal. . More than 60 ships are lined up to dock, with waiting times of up to three weeks.

Participants at every link in the American chain – shipping companies, port workers, truckers, warehouse operators, railroads and retailers – blame others for the imbalances and disagree that 24/7 operations. 24/7 will help them catch up. All are struggling with a labor shortage, according to the Journal.

COVID-19 outbreaks, lockdowns and cargo backups have also had an impact on Nike. The Wall Street Journal also reported that the sneaker giant’s revenue growth is being constrained by supply chain disruptions that have slowed the production and delivery of shoes and other goods around the world.

“We are not immune to the headwinds of the global supply chain,” Nike CFO Matthew Friend said on a conference call. He said the company lost 10 weeks of production in Vietnam due to lockdowns there after an increase in COVID-19 cases and that it took an average of 80 days to move products from Asia to America. North, twice as many as before the pandemic.

The outlet reported that Nike executives said the time it takes to move a freight container from Asian factories to North America is now around 80 days, twice as long as before the pandemic.

More than half of Nike’s shoes and about a third of its clothing manufacturing takes place in Vietnam, where local authorities recently extended the lockdown until at least October 1, according to the outlet.

RELATED: Port of Los Angeles sees cargo safeguards amid growing demand for consumer products

In response to the safeguarded ports, Costco charters its own container ships to transport goods between Asia and North America. The retailer said it was experiencing the biggest lags in its furniture, toys, computers, tablets, video games and major appliances categories.

The company is also imposing limits on key household items like toilet paper and water, which have seen increased demand due to the pandemic.

Retail experts say it’s best for Americans to start their holiday shopping early by giving the global supply chain creases.

“Getting a head start on holiday shopping is crucial this year. Many toy makers like Mattel and tech makers struggle to navigate the supply chain and keep shelves stocked, ”said Brett Rose, Founder and CEO of United National Consumer Suppliers. “Unfortunately, that also means they are struggling to keep prices low. By the time the shopping season is over, it will be too late for most.”

FOX Business and Associated Press contributed to this report. This story was reported from Los Angeles.