‘Clogged’ shipping channel could delay arrival of Christmas presents


China’s “zero tolerance” law for COVID-19 could worsen already strained supply chains this year.

TAMPA, Florida – It might be a good idea to start your Christmas shopping earlier this year.

Strong product demand over the holiday season is expected to “clog” safeguarded shipping channels even more than it already is, a business analyst professor at the University of Iowa told Axios.

If you decide to wait to buy gifts, you may not be able to get them in time for Christmas.

Companies are expected to experience some production congestion until 2021 as they “search for raw materials, shipping containers and labor,” she told Axios.

Suppliers to Walmart, Target, Amazon and other major retailers told Reuters they plan to place holiday orders for goods made in China weeks in advance this year.

Specific companies like Nintendo are “unable to manufacture enough Switch consoles to meet demand” and are unsure of their production plans for the coming year, reports IGN.

“Inventory levels will be the primary concern for retailers as they are faced with the decision to have limited or no inventory of certain items or to deal with the higher costs associated with air freighting goods instead,” CNBC Mario Ciabarra, CEO of digital analytics company Quantum Metric. .

A key terminal at the world’s third busiest port has been closed after a worker tested positive for COVID-19. According to CNBC, this is the second time this year that China has shut down operations at one of its major ports.

China’s “zero tolerance” law for COVID-19 will worsen already strained supply chains this year, analysts told CNBC.


About Author

Leave A Reply