Let's Talk Business: Supply Chain Issues and Holiday Shopping
Should you really start your holiday shopping now?
We are aware of the worker shortage facing our country. And now, supply chain issues are also prominent. During the pandemic, consumers shifted much of their spending habits away from services to more tangible products. As a result of issues related to COVID and this shift in spending, there are hundreds of thousands of containers stuck on ships at the Long Beach and Los Angeles ports.
In a continuing effort to bring goods to market, the Los Angeles port will join the Long Beach port and start operating 24 hours a day, seven days a week. The extra shifts have been agreed to by both the International Longshore and the Warehouse Unions, which represent the dock workers. These expanded operations were announced by the Biden administration.
However, it is important to point out, this only addresses part of the issue. The severe shortage of truck drivers and warehouse workers also affects the supply chain. These sectors are going to have to step up as well to alleviate the problem. And several companies have announced they will do so. Walmart, FedEx and UPS have all committed to bolstering operations.
In the Cape/Jackson metro, we have seen firsthand the shortage of certain goods. Many have commented on reduced inventories in local stores and experienced problems trying to obtain certain goods. This is likely to continue for a while but let’s all hope the steps being taken will help soon.