With the holiday seasons approaching and ports still catching up with shipments, will the delay in receiving goods persist through 2020 to 2021?
CONTAINERS AND THE SUPPLY CHAIN
Supply chains around the world are facing massive pressure as the year closes out. In conjunction with the lack of shipping containers, a new difficultly of low productivity in handling containers at ports and terminals have also threatened the efficiency of delivering products on time. Various ports are seeing a dwindling number of staff who can help process the shipments as Covid-19 continues to claim more victims.
In particular, the port of Los Angeles is seeing continued congestion with a record-breaking 506,613 loaded imports as of October 2020. This value is a 28.99% increase from October of 2019. Singapore has also seen a rollover rate of 31% in October, compared to its 21% last October. These are the latest numbers available, suggesting that the holiday season could result in even higher values.
SOARING DEMANDS FROM ALL CORNERS
November 2020 saw a boom in holiday offerings and sales. Many companies took advantage of the second-to-last month of the year to push out sales in hopes of allowing shipments to arrive on time for the holiday season in December. The influx of demand on various goods led to companies such as FedEx to see a sharp increase in their shares. However, shipments are still facing delays due to the high volume of demand. Major ports such as Los Angeles have seen a worsening of import congestion, forcing workers to continue putting in overtime to make up for any delays. Additionally, ports are also beginning to prioritize dual transaction cargos to combat the deficiency of containers as seen in previous months.
PLAN TO AVOID DELAYS
Business and consumers alike are being affected by shipment postponement. Consumers are being advised to order as early as December 15th in order for goods to arrive before the holidays. Product transportation delays are a challenge for JIT businesses in particular. It is advised to order any products as early as possible to counter any potential additional delays. US ports have already seen unexpected interruptions and while incentives have been offered to delivery personnel, this complication is anticipated to extend to even 2021. The best course of action is to plan well in advance.
