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If you want your Christmas gifts to arrive on time, you might need to order them now
Shipping delays and soaring delivery prices may mean your Christmas gifts won’t arrive on time this year
2021 has been a tricky year for the global supply chain, with shipping delays and soaring delivery prices. The industry has faced issues ranging from the outbreak of Covid-19, to container shortages and a ship becoming stuck in a major transport canal.
But now, experts are warning that these issues are not likely to resolve themselves any time soon, and we might be looking at shipping delays long enough to disrupt this year’s Christmas shopping.
“U.S. importers at the moment are panicking,” says Steve Saxon, a McKinsey & Co. partner in China. “People are already worried about whether they can the shipping capacity in August and September.”
Major Chinese port shuts down amid Covid outbreak
One of China’s key export hubs was partially shut down this month to control a Covid outbreak. This came as yet another blow to the $4 trillion industry. One estimate reported the shutdown brought more than 400,000 20-foot containers to a standstill.
“The latest one is the worst in terms of the supply-constraint hits,” says Saxon. He believes the Yantian port won’t return to business as usual until August.
August is peak time for retails to stock up on inventory for Christmas shoppers, which has led to fears over potential incoming shortages.