Transpacific cargo capacity crunch delays retail shelf-stocking

By on Feb 5, 2010

While there may be early signs for recovery in the transportation industry recovery, a considerable shipping capacity crunch for Asia-North America container shipments has sent retailers scrambling to get merchandise to store shelves

Key analysts at the 10th annual TPM conference on March 1-2 in Long Beach, Calif will discuss the impact of the cargo bottleneck, the state of US imports and whether the deepest recession in 50 years will fundamentally change supply chain choices and shipping patterns

According to Peter Tirschwell, senior vice president of strategy, The Journal of Commerce, latest economic data including fourth quarter GDP growth of 57%, clearly points to a recovery However, the transportation industry remains concerned about underlying economic weakness, an uneven recovery and its sustainability

For importers rushing to ship goods ahead of the mid-February factory shutdowns for the Chinese New Year, capacity is a significant challenge

Just as the economy is starting to pick up, there are delays getting merchandise to stores At the same time, shipping rates are being raised significantly and, in many cases, cargo has been diverted to more expensive airfreight to meet delivery deadlines

"We are now experiencing the most turbulent conditions that the transpacific market has seen in recent years," said Tirschwell