At the end of September, two of America’s largest ports—Los Angeles and Long Beach—had a total backlog of 65 cargo ships delayed from docking, causing significant disruption to the country’s supply chain.

A Surge in Orders

The COVID-19 pandemic had a drastic impact on global economies. The restriction of movement and transportation led to backlogs in orders. The spreading illness and strict self-isolation rules reduced the workforce; particularly in manufacturing and logistics, employees cannot work from home. Recently, as economies have opened up again, countries have experienced a surge in imports and exports. The US, in particular, has seen a remarkable rise in imports.

Retailers and manufacturers have been attempting to restrict their inventories as the country reopens; however, the global shipping industry has failed to meet these orders within the intended timeframes.

Cargo Ships Delayed amid Festive Period

In particular, supplies of timber, clothing, and pet food have been disrupted, impacting inflating prices. The country is also experiencing shortages in stocks of children’s toys, which has most likely been exacerbated by the rapidly approaching festive season.

Experts predict that delays at ports will persist into 2022, as demand for Christmas presents will enforce softer pressure on the already stretched shipping industry.

The US Toy Association includes 950 toy firms that sell three billion toys a year, mostly imported from China (85%). The organization has voiced concerns that shipping delays will affect many toy sellers this Christmas. As a result, retailers in the US stand to lose a significant amount of sales.

Overcoming the Problem

Ed Desmond of the US Toy Association thus encourages strong relationships with shipping companies, as they are vital to weather the storm. However, not many small and medium-sized enterprises (SMEs) have built up those relationships. The situation, therefore, highlights the importance of fostering strong working connections between all sectors in the supply chain, whether a company is large or small and regardless of what they are selling or manufacturing.

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