After an eight-day workers' strike,
The UK's largest container port has largely stagnated,
Container delays estimated at $4.7 billion,
It will have a profound impact on europe as a whole.
Some economic indicators indicate that the holiday season remains strong,
But in the face of the still unstable economic and logistical situation,
Sellers need to maintain a "cautiously optimistic" mindset.
This summer, as temperatures rise to record levels, so does the anger of the British public. Employees in many industries, including aviation, rail, postal services and terminals, went on strike to demand pay raises in response to record-breaking inflation, making the summer a "summer of strikes".
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An eight-day strike of 1,900 workers at Felixstowe, Britain's largest container port, ended today, and the total value of the containers affected by the strike is estimated at around $4.7 billion, according to MDS Transmodal's trade data analysis. The strike has already cost £680 million, but the incident has not yet come to an end.
The secretary general of the Unite union, who led the strike, said the dispute would continue to escalate unless a new salary offer was made, even until Christmas. A union executive said workers in the Us, Europe and Australia would help the strikers if the port side did not agree to wage demands by Tuesday, who would refuse to load and unload vessels coming from Suffolk port, which would cost the port more than £1 billion.
Even if the strike were to end there, it would take a long time for the impact of the event on shipping to subside, and it would have far-reaching implications for all of Europe. More than 48% of Britain's container trade is processed at the port of Felixstowe, which was halted by strikes, forcing a large number of transport companies to temporarily move to other ports, leading to congestion.
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Some logistics service providers said it would take about two months to eliminate congestion. Today, it takes an average week for a container to leave the port, and then it takes another week to arrange the truck shipment. Retailers are preparing for upcoming holiday sales, and congestion will undoubtedly affect the arrival of products planned to be on the shelves during the holidays. An online toy seller in the UK said that because much of the inventory was shipped from Places likely in East Asia via containers, the strike was likely to affect the supply of goods, which would have an impact on store pricing and cash flow.
The holiday sales season is the busiest and most revenue-making time for many sellers, and while the retail sector is currently battling headwinds, some economic indicators suggest that this year's holiday season will still be strong:
01
Consumer confidence boost: While still subdued, U.S. consumer confidence rose for the second straight month in August thanks to falling gasoline prices, and household inflation expectations fell to an eight-month low in the near future.
02
U.S. consumers are making more and spending more: Wages and salaries rose 0.8 percent in July, the biggest increase since February, according to the U.S. Department of Labor. Inflation-adjusted U.S. consumer spending rose 0.2 percent in July after remaining unchanged in June.
03
Inflation is slowing: The Personal Consumer Expenditure Price Index, the Fed's preferred measure of inflation, fell 0.1% month-on-month as energy prices fell, the first decline since the pandemic began.
The latest data released by global influencer marketing platform LTK says 96% of consumers plan to shop online this holiday season, and 53% say they plan to complete most of their purchases online. More than half of shoppers intend to spend the same or more on the 2022 holidays, with beauty/personal care items (32 percent) being the hottest category, and many shoppers wanting to buy clothing and accessories (26 percent) as gifts.
These trends have given some retailers more optimistic expectations for sales for the rest of the year. Premium furniture retailer Arhaus raised its full-year revenue forecast to $1,173 million to $1,193 million, while sporting goods retailers Hibbett and Dick's Sporting Goods both raised their full-year guidance due to improved market conditions. For sellers, this is a time of "cautious optimism", both to actively prepare for the holiday season and not to be too aggressive.