Retailers Pay More to Get Cargo (No Guarantee)

Shoppers may not find fully decked shelves in upcoming holiday seasons. Retailers in the US and Europe struggle with shipping schedules, competing for limited space for products made overseas. Emerging economies have also increased demand of containers for shipping. To receive shipments in a timely manner, retailers pay up to triple the prices from a year ago. With the global recession, retailers saved money by reducing inventory, which left 11 percent of ocean carriers idle in 2009. Expecting improved sales this year, many companies request shipments well in advance to guarantee delivery. Carriers, also averse to risk, did not add new space quickly, so retailers are still left with costs of holding inventory. Stephanie Clifford writes for the New York Times: “The shipping problems are a huge headache at a time when retail sales are weak and consumer confidence is waning.” Even the most prominent retailers face constant uncertainty over shipping. – YaleGlobal