Supply Chain Experts Say You’re Ordering Your Christmas Gifts Now

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Backlogs related to extreme weather conditions and COVID issues around the world are creating significant delays.

FORT WORTH, Texas – Christmas is just under 100 days away, but supply chain and shipping experts say now is the time to buy some goodies.

Around the world, shipping delays are reaching record levels and a record number of container ships waiting to unload off the southern California coast.

“[It’s] total chaos, ”said Hiram Hartnett, vice president of sales at Pegasus Logistics. “Business for us is booming. “

Pegasus Logistics is a global freight forwarder that helps move heavy and high tech equipment.

“A little hiccup here or there can absolutely have a domino effect on the entire supply chain,” Harnett said. “If you come back in 2019, you might have paid $ 2,000 for an ocean can. Right now people are paying over $ 20,000. “

The expedition across the Pacific Ocean used to take 10 days in a fast ship, but now it can be up to two months.

“What we’ve seen in the United States in recent years, there’s been more disruption than I’ve seen in a long, long time,” Dave Malefant, Director of Outreach and Partnerships at the Center for Supply Chain Innovation by TCU. noted. “The links in the supply chain are simply broken.”

There are several causes. Inclement weather in the United States, COVID-19 closures in the United States and especially overseas, labor shortages and high consumer demand are all to blame.

“You are already late in getting your cargo to the United States,” Harnett explained. “It comes into your [distribution center] or the location of your warehouse where you are already understaffed. The demand is through the roof. It’s just every perfect storm that’s out there.

Food and retail are the hardest hit, according to Malefant, and costs are skyrocketing with supply going to the highest bidder and the problem started even before the pandemic.

“Budgets for everyone have been blown out of the water,” Harnett said. “I mean, if you were a supply chain manager now, it’s like at this point I think they’re just being forgiven for market inflation. “

“If one of those links breaks, then the whole supply chain collapses and we constantly see something breaking down in the supply chain,” Malefant said.

UPS international president Scott Price told AFP in an interview that he was also concerned about shipping shortages and prices.

“I say to people half-jokingly, ‘Order your Christmas presents now because if not on Christmas Day there might just be a photo of something that won’t happen until February or March,” Price said. .

“It is a logistics business paradise right now because there is more demand but our customers are suffering a lot,” Hartnett said.

The best estimate is that it will take until the middle of 2022 to be settled. Hartnett says logistics companies are just guessing right now to prepare for demand and supply issues.

“It takes a long time to try to rebuild the links in the supply chain,” Malefant said.


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