Delays in Asian Import Supply Chain Challenge Logistics Managers

NEWARK, N.J., July 26 /PRNewswire/ -- U.S. importers are reporting growing delays in getting goods out of Asia, pushing logistics managers to find creative ways to get shipments moving and raising worries about potential problems for this year's peak season. The concerns come as retailers, wary of the fragile recovery, try to keep inventories lean and costs down but find that spending to avoid congestion or expedite movement is quickly proving to be a necessity.

(Photo: http://photos.prnewswire.com/prnh/20100726/NY40778 )

(Photo: http://www.newscom.com/cgi-bin/prnh/20100726/NY40778 )

A missed shipping date from Southeast Asia or the Indian subcontinent leads Chinese manufacturers to push back production. Slow-steaming and container shortages, legacies of the recession, add additional days to the trans-Pacific voyage. Terminal congestion at southern California ports -- which handle nearly 40 percent of U.S. imports from Asia -- and a shortage of trucking capacity contribute more layers of complexity to the timeline.

Behind schedule before the cargo even reaches them, distribution facility logistics managers bear the burden of making up for lost time, staying cool-headed and flexible in order to place goods on retail shelves on schedule. To avoid missing delivery dates -- forcing non-recoupable merchandise discounting down the line -- retailers are spending on added warehouse shifts, expedited shipping and transloading options to keep goods moving.

"We're doing everything to avoid the problems," David Hargreaves, chief operating officer of toy manufacturer Hasbro, told investment analysts in a conference call last week. The company has put additional container capacity and shipping capacity in place and is encouraging retailers to take in more product, and do so earlier, he said.

This week's Cover Story in The Journal of Commerce examines the lengths supply chain planners, terminal operators and other retail partners are going to balance the many pressures major delays and the very bottom lines of retailers and manufacturers.

To view daily news visit www.joc.com. For all media enquires, including article reprints, please contact Editorial Director Paul Page.

Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally.

To become a member of The Journal of Commerce click here. JOC members have access to our weekly print and digital magazine and Web site, as well as a 10% discount on all JOC events and trade shows, UBM Global Trade Directories and select PIERS products. Authoritative editorial content in the form of daily news, weekly analysis and regular features ensure our members have the information and data necessary to understand the issues facing trucking, rail and maritime transportation. Members enjoy access to "By the Numbers," an exclusive weekly compilation of key industry statistics that provides detailed views of current market trends across all modes. Regular market intelligence reports -- utilizing PIERS trade data -- include Top 100 Imports and Exporters, quarterly Top 40 Container lines, Trans-Pacific and Trans-Atlantic Maritime Forecasts and Top Container Ports and Terminals. Market-sector supplements, including Breakbulk, Cool Cargoes, 3PL, JOC Guide to Trucking and others, ensure all modes are comprehensively covered.  

About UBM Global Trade - UBM Global Trade is the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, Breakbulk, RailResource, PIERS Global Intelligence Solutions and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in Newark, NJ, with offices throughout the United States. For more information, explore www.ubmglobaltrade.com or call 800-223-0243 (+1-973-848-7250 outside the U.S. or Canada).

SOURCE The Journal of Commerce

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