08/26/2021
This year has been crazy - here is a look into what I am dealing with on the daily. Orders are taking me more than double the time- as I have to check and re-check inventory on every single order. Stephanie Baiman Walter
As you are aware, Covid 19 has caused major disruptions in how goods get to market. For the promotional products business with upwards of 85% of items coming from China and other parts of Asia, the impact is significant. One of our custom manufacturers based in China has shared information that you and your customers should keep in mind as you plan for the holiday season and the new year. Planning early (now) is a great idea as well as selecting items that are US made. Also consider food gifts which are always fresh and available. Please review the information below from our supplier. While they are reporting on both general conditions and their own, virtually all offshore shipments are similarly affected and is the primary reason inventory is a problem for our suppliers. Here is what they shared:
Cost related
International ocean freight has gone record HIGH. A 40’ container from China to Los Angeles used to be less than $3,000... now is over $10,000!
That means corporate accounts will have to choose a different promotion/incentive product if the budget for this year is the same as previous year.
Time related
Shippers are experiencing 4 to 6 weeks delay on all shipments to the U.S and have been for the past 6 months.
The delay situation is expected to be worse starting from Oct, 2021 to March, 2022.
That means the turnaround time for an oversea production project will take at least 120 days when factoring the potential delay into the equation.
Heads Up on Chinese New Year
Chinese New Year is at the end of January, 2022. Most operations will close 2 weeks before Chinese New Year and will be back on track towards the end of Feb.
For projects that are due in May & June. Order must be placed by early Nov, 2021.
For projects that are due in March & April. Order must be placed by end of Sept, 2021