How the shipping crisis ends
Christmas is ruined!
Anecdotally, you may have noticed your e-commerce orders getting delayed. I tragically had a white blazer dress that was pushed for delivery for weeks… then was unceremoniously canceled!
My boyfriend ordered a charming Kavu hat several weeks ago and it still has not arrived.
And my parents have been waiting for the last segment of their couch for months.
I have unfortunate news for them, myself, and even you — get used to it. The shipping crisis that’s delaying containerized goods from East Asia to the US won’t be over until next year.
One of the most interesting takeaways comes down to this handy chart (done by my colleague Madison Hoff):
Retailers’ inventories are back up to pre-pandemic levels. But the ratio of inventory to sales is at a record low.
As Michigan State's Jason Miller, an associate professor of supply chain management, wrote in an analysis shared in American Shipper, retailers increased inventories by $35.12 billion from April to October in 2019.
This year, Miller wrote that retailers need to add $65.11 billion to be ready for this year's peak season — nearly twice as much!
See you next week!