Retailers Scramble Amidst Port Strike: Strategies to Save the Holiday Season

Major retailers, including Levi Strauss and Costco, are implementing alternative shipping strategies to navigate the ongoing U.S. East and Gulf Coast ports strike. The disruption threatens shortages, impacting a wide range of goods. Companies aim to minimize the effect by rerouting shipments and boosting domestic production.

Major retailers, from Levi Strauss to Costco, are scrambling to secure their supply chains as the strike on the U.S. East Coast and Gulf Coast ports enters its third day. Long queues of container ships are seen outside major U.S. ports, halting the flow of goods right before the holiday season.

According to analyst Sky Canaves, retailers account for nearly half of all container shipping volume. Levi Strauss, aiming to preserve product availability, has shifted routes to the West Coast and prioritized certain ports, utilizing air freight as required. This strategy is echoed by others, including Costco, which has pre-shipped products and prepped to use alternate routes.

Meanwhile, Newell Brands stands ready to boost production should retailers like Walmart and Lowe's demand. Global supply chains face ongoing challenges with coffee shipments disrupted and prices on the rise. Retailers brace for potential shortages, as consumer behaviors amplify inflation fears.

(With inputs from agencies.)