This fireside chat recap is from Day 2 of FreightWaves’ Global Supply Chain Week. Day 2 focuses on retail, building and construction.
FIRESIDE CHAT TOPIC: The price of congestion: How is the retail industry navigating the container congestion?
DETAILS: Lori Ann LaRocco speaks with Jonathan Gold about the retail import slowdown. No retailer wants to have empty shelves or place items they receive late immediately on discount. These added costs from the delays ultimately have to be absorbed by the retailer. They discuss how retailers are navigating the container crunch so they can be fully stocked.
SPEAKERS: Gold is the vice president of supply chain and customs policy at the National Retail Federation. LaRocco is the senior editor of guests for CNBC Business News and a FreightWaves contributor.
BIO: Gold joined NRF in October 2007 and is responsible for representing it before Congress and the administration on supply chain and customs issues impacting the retail industry. Prior to NRF, Gold served as a policy analyst for U.S. Customs and Border Protection, providing guidance on issues surrounding maritime cargo security and trade-related matters.
KEY QUOTES FROM GOLD:
“The ripple effects that we’re seeing from all of this congestion are pretty significant. It’s going to impact all sectors of the economy going forward.”
“The inventory ratio is incredibly low. Folks are struggling to get product in.”
“Some of the challenges that we’re facing are just operationally related issues that I don’t think Congress can address. But having a policy going forward so that we understand the need for improving freight movement throughout the United States and putting money towards that is incredibly important and sends the right signal. … What we’re pushing for is a robust freight movement plan as part of an infrastructure bill going forward.”
Related articles:
Viewpoint: Container congestion may now impact Easter
Commentary: Breaking the backbone of trade
More retail earnings, more blaming shipping costs for miss
Can retailer prudence derail the inventory restocking thesis?
LSorrell
Make it easier for the trucks to get in the Port. We have Twick Cards, Passports and they still want more from the driver. Drivers are just saying forget it and go after the easier load.