AN agreement between unions and employers in west coast ports has calmed the shipping community, reports Chicago's Chain Store Age.
But the aftermath of attacks of missile strikes in the Red Sea is leading to prolonged transit times and increased expense for retailers, said the report.
Following the conclusion of the holiday season, it is anticipated that inbound cargo volume at major container ports across the nation will gradually decrease during the first quarter, only to rise in the spring.
This deceleration coincides with disruptions in retail supply chains triggered by attacks on cargo ships in the Red Sea, as highlighted in the Global Port Tracker report jointly produced by the National Retail Federation and Hackett Associates.
"This is the traditional slowdown when the supply chain gets a break after the busy holiday season, but there's always a new challenge on the horizon," said federation vice president Jonathan Gold.
"Retailers are working with their carrier partners on mitigation strategies to limit the impact, but we are seeing longer transit times and increased costs as a result."
Source: shippingazette