SEKO Logistics, which began in 1976 as a single-office operation in Chicago and now has a global reputation for innovation and first-class logistics services, has a special season’s greetings for the supply-chain industry: Get your shipments in order now for the peak Christmas holiday shopping season.
The Grinch causing this disruption: COVID-19, whose “lingering effects . . . meant that the Port of Los Angeles and Long Beach were hugely congested earlier this year by the surge of importing, and it’s only going to get worse before it gets better,” according to a SEKO release.
Compared to previous years, shipments need to be booked up to eight weeks earlier than usual, according to Akhil Nair, SEKO’s VP Global Carrier Management & Ocean Strategy APAC. “The current global ocean freight supply chain is facing huge issues, none of which seem to be going away any time soon, and definitely not before Christmas,” Nair maintains.
“Based on what we are seeing, the current port-to-port lead times are being impacted by two major factors. One, origin–shippers are unable to get equipment or space to get their cargo out in time. And two, destination–the port congestion is having a severe impact on schedule reliability. This is resulting in further delays–up to 20 days on major export trades from Asia.”