08/13/2021
Production:
Bags/ 1 color: 15-20 days after proof approval
Bags/ 2 + colors: 20-30 days after proof approval
All other products: 15 days after proof approval
Please note we are not guaranteeing ship dates at this time.
Again, anything sent without adequate production time will be stopped in order entry and placed on hold.
SNAPSHOT of what is going on in China/Shipping/Stock
Air Freight
US airline terminals are in disarray, and shipments are getting lost or buried in the warehouses. Two to four-week delays in availability and pickup have become common in Terminals like Chicago.
Following a positive case with a worker at the FASCO PVG terminal, 33% of flights have been cancelled out of PVG (408 flights).
It is mandatory for workers in PVG to take a COVID test every 48 hours, which has led to productivity decreasing to around 60%.
Zhengzhou has experienced an increase in COVID cases, with 81 in total, resulting in more flights being cancelled in and out of CGO.
China Eastern Airlines has cancelled all flights (PAC) from China to USA/Canada, France and Germany from 10th August till the end of August
A lack of manpower for ULD build-up at China gateways (PVG/PEK/CGO), has resulted in several flights departing with 50% cargo or less.
Cargo is being loaded based on revenue base, causing prices per Kg. to rise.
Ocean Freight
Space is scarce for shipments routed through IPI service by rail into or via Chicago, once containers arrive at the rail yard in Chicago, availability for pick up is averaging 1-2 weeks - with delays of a month or more in some cases.
There is a severe shortage of truck drivers in major seaports. Truckers are canceling new delivery orders, rejecting current delivery orders, and increasing rates at the last minute.
An increasing number of factories within Eastern China have closed due to the increased Covid-19 Delta rates in China, and truckers are increasingly hard to find in the market. This situation will make space very tight towards the end of August.
86 highway gateways have closed within Eastern China which has caused an increase in trucks driving on local roads by 50%-60%. The situation may last to end of this month.
Space out of East and South China will remain tight in the following the weeks due to the LA port congestion issue, and we foresee a rate increase of around 5-10% in the following 2 weeks according to the marketing and vessel omissions.
Port Congestion Surcharge (PCS) are now in play amounts vary by Carrier listed above and have been published in compliance with the FMC for all cargo moving from Asia Ports and Points to/through all US West Coast Ports.
I unfortunately do not have an ETA of when these inventory/production delays will get better, but we feel like things will/should settle back down in about a year. Inventory will be the hot topic through the end of 2021, especially in apparel/fleece. Then recovery will continue for the 6 first half of 2022 to finally get people back to work.
One thing that will help long-term is that we will all be more efficient in how we handle the business going forward.
Please keep me posted on any additional issues and I will do my best to help anyway I can.
Stay safe
