Supply-Chain Delays Hit Retailer Restocking Efforts

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Bottlenecks in the supply chain due to fragmented imports into US seaports hamper retailers’ efforts to build up stocks as consumers increase their costs.

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Steve Madden Ltd.

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Crooks Inc..,

Well-known footwear retailers both said in their reports for the third quarter of this week that they are affected by logistical delays in the delivery of merchandise to distribution centers and stores entering the critical sales season.

There was such a thing as limited stock or a problem with the delivery of containers and ships, which delayed the progress of events abroad, said Steve Madden, executive director and chairman of the board of directors, Ed Rosenfeld, by telephone on Tuesday about the company’s profits. According to him, the work in the company’s warehouses and wholesale customers is also slower, simply because of the labour shortage and other disruptions caused by Covid.

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Mr Rosenfeld said that the delays had delayed the delivery of goods from the factories to the shops by about two weeks.

This spring and summer, hundreds of flights from container shipping companies were cancelled because the coronavirus attacks have led to a recovery of the economies of the countries and a weakening of world trade. But demand fell sharply in the summer after the store reopened, and retailers rushed to replenish their stocks to deliver goods for the expected increase in autumn.

What you saw out there, I think it really came together when we… Jess Dunkert, vice president of supply chain at the Association of Retail Leaders, an American retail group.

Supply chain history shows that something is happening and that we need to adapt, she said.

Trade is recovering rapidly after a large number of companies were laid off in the first weeks of the global pandemic.

According to London-based statistics on container trade, global container traffic increased 34.2 percent in August compared to February, when many Chinese factories closed. This caused a wave of containers in US ports, and the Global Port Tracker report by the National Federation of Retailers and Hackett Associates in August 2002 showed the largest volume of containers at record levels.

Although container lines have recently recovered some of their unused capacity, the increase in demand has forced Asian exporters to wait until there is little space left on vessels and has led to increasing delays in the movement of goods through the ports of Los Angeles and Long Beach, which together form the main American gateway to Asian imports.

The Pacific Merchant Shipping Association, a trading group representing marine terminals and ship operators, said it took an average of 4.3 days to handle containers arriving in Southern California in September, more than twice as long as in March. According to the PMSA, more than 21% of incoming containers spent more than five days in the docks in September, more than double the previous month.

Most of Steve Madden’s products for the autumn come from China, but in the spring the company is again diversifying outside China, says Steve Madden’s Rosenfeld.

Anne Mehlman, the CFO of Crocs, said that the company, known for its rubber sandals, had to wait longer and longer for delivery.

We certainly see an increase in logistic costs and a kind of logistic backlog in the world… and we expect these logistics costs to continue next year, Mrs. Mekhlman said.

-Paul Paige contributed to this article.

Write to Alison Prang at [email protected]

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