New Wrinkle for Trans-Pacific Peak Shipping Season, Retail Importers Push Asian Suppliers Further into Supply Chain

NEWARK, N.J., July 19 /PRNewswire/ -- Facing greater uncertainty in the consumer market, North American retailers are trying to hold off purchases of finished goods until as late as possible by pushing their suppliers in Asia to retain ownership of products deeper into the supply chain, reports The Journal of Commerce. The retailers are trying to hedge their risks and hold onto cash, and that means more suppliers that provided goods on the docks in Asia are being called on to manage the transportation of finished products through increasingly congested trans-Pacific distribution channels.

(Photo: http://photos.prnewswire.com/prnh/20100719/NY37069 )

(Photo: http://www.newscom.com/cgi-bin/prnh/20100719/NY37069 )

Many suppliers previously required to just move their products to Asian shores must now get their goods from factory floor to U.S. retail door. The impact of the change in procedure is stretching from the docks of Hong Kong and Shanghai to intermodal networks in North America, where decreased equipment and drivers are already increasing pressure on transload operators. Reduced cycle time and cost savings make this appealing to importers, but it's causing panic among suppliers and a splintering of the supply chain at a critical moment, with volumes increasing but resources limited.

"The long-existing supply chain model is broken," said Patrick Ahern, vice president for international at National Retail Systems, a New Jersey-based provider of logistics to retail importers. "And it hasn't been replaced by a new model."

This week's Cover Story analyzes this potentially revolutionary twist to a global supply chain already struggling under the weight of a fragile economic recovery, rapid inventory build-up and a peak-shipping season just getting under way.

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.

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About UBM Global Trade - UBM Global Trade, formerly Commonwealth Business Media, Inc., has been the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide since 1827. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, The Journal of Commerce Events, 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 and in Canada and Hong Kong. For more information, explore www.ubmglobaltrade.com or call 877-675-4761 (+1-847-763-4932 outside the U.S. and Canada).

SOURCE The Journal of Commerce

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