Source: Overseas Network
In order to solve the problem of cargo backlog in the port, the port of Los Angeles, the largest port in the United States, implements a round-the-clock operation model. (Infographic)
Overseas network on November 19, recently, the United States is deeply in a supply chain crisis, there are serious congestion problems in many ports, the resulting shortage of materials makes American companies, especially small enterprises, bitter. Some small U.S. business owners say they will go directly to Chinese factories to pick up their goods to ensure sufficient inventory.
The National Broadcasting Corporation (NBC) reported on the 18th that supply chain problems in the United States have led to shortages of pet food, Christmas trees, toilet paper, baby products, etc. Large retailers like Walmart and Home Depot already guarantee supply through private shipping tools. The makers of Beanie Babies, for example, bypassed congested ports and used 150 chartered planes to ship the required plush toys from China to the United States. These solutions are expensive and hard for small businesses to afford.
"What we're doing now is the next bigger order to bring the goods (from China) directly to our warehouse." A small business owner said bluntly. To ensure there is enough product, small businesses in the U.S. have had to be creative and minimize delays as much as possible. In some cases, they will go directly to the Chinese factory to get the order. On the other hand, it also allows companies to open their own warehouses in the United States in order to bypass port congestion.
Pish Posh Baby, a new Jersey baby products store, used to pick up goods in China. In the past, they did this to save costs, because manufacturers sometimes gave some discounts to merchants who picked up goods directly from their factories. But because of the current supply chain congestion in the United States, their purpose in China is different from before. "Now a lot of times, manufacturers don't have enough profits to offer discounts, so we go to China just to get the products." We're not trying to save money, we're becoming more frequent. Charlie Birnbaum, the company's chief operating officer, said that by picking up the goods, the company has been able to have more control over distribution and can get goods into the hands of customers faster. What is being done now is to place a bigger order and take the goods directly to their own warehouse.
Not only Pish Posh Baby, but also The American toy company Kids2, which owns multiple brands, has also felt the pressure of the supply chain crisis. The company's chief executive, Ryan Gunnigal, said there had been an increase in demand from retailers looking to pick up goods directly from factories in China, with a total of 10 large retailers making similar demands on him. "Retailers are looking for big companies like us to help them solve some of their supply chain challenges." Gunnigel saw things going early on, and fortunately, his company had a solid foothold in China before supply chain problems arose. It also gives Gunniger's companies time to deal with [supply chain issues] and seize more opportunities. He also said that even if prepared, if his inventory runs out, it will take about six months to replace. Even if companies are able to get products directly from China and can afford freight to the U.S., U.S. ports still have a backlog of products. Once ships in the port are able to dock and unload cargo containers, they are lined up at the port's processing center, waiting to be labeled and picked up by the shipper.
Levi Konlow, CEO of American e-bike company Lectric, also said the process could now take weeks, not days. Especially in February and March, when the delays are at their worst, it takes five to six weeks to reach the company from the moment the goods arrive at the port. "The third-party logistics and distribution center in Los Angeles is currently unavailable. They don't have enough channels to get the goods out. Conlo said.
The report concluded by noting that the "dramatic" measures taken by small businesses in the United States to maintain inventory and meet demand show that the supply chain crisis has put enormous pressure on retailers. As Birnbaum puts it, "There are problems all the way from sourcing goods to getting products into the hands of U.S. customers." (Overseas Network Zhang Min)