Bay Space Companies Impacted by Cargo Slowdown at California Ports – CBS San Francisco
SAN FRANCISCO (KPIX) – In light of a massive shipping congestion in southern California ports affecting businesses and consumers in the Bay Area and across the country, the Biden administration took steps Wednesday to ensure goods are being delivered.
With a crisp fall chill in the air and Halloween approaching, Phil Levy, Flexport’s chief economist, says now is the time to start thinking about your Christmas shopping.
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“Do your shopping early. Don’t wait and assume the stores and shelves will be full, ”Levy told KPIX.
The problem is a sticky supply chain. On Wednesday, President Joe Biden announced a deal to free up the ports of Los Angeles and Long Beach, where ships and containers await unloading off the coast of Southern California.
“After weeks of negotiating and working with my team and the major union retailers and carriers, the Port of Los Angeles announced today that it will be operational 24 hours a day, 7 days a week. This follows on from the Long Beach port’s commitment to operate around the clock, “said Biden of the White House.
Meg Shackleton owns the Margaret Elizabeth jewelry store on Chestnut Street in San Francisco. The jewelry is designed locally by Shackleton and made in India. She sweats the winter holidays and supplies.
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“Our typical delivery times are usually 4 to 6 weeks. And when I checked in with our team a few days ago, they told me that our delivery, which should arrive at Christmas, would take more than six to eight weeks. Which means we’re getting closer to the real holiday, ”Shackleton said.
Levy says Biden’s deal with LA and Long Beach will help on the margins, but the supply chain problem isn’t just a backlog at ports and customs; it also gets things moving on the floor.
“Do you have the ability to deliver all of this with trucking? And you had, firstly, a shortage of truckers and, secondly, the same difficulties as the rest of us with health problems and the like. So it was a real problem. “
Shackleton says she’s trying to work around problems, but it’s difficult.
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“It’s not necessarily delays that you will learn about at the time of ordering,” she explained. “It’s something you remember, ‘Oh, this is supposed to be this week,’ only to find out we’ve been out for a couple of weeks.”
