Holiday shipping season likely impacted by shipping backlog
The shipping backlog stemming from the California ports is expected to affect the holiday shopping season
Don't wait to holiday shop.
That's the message businesses and retail organizations are telling shoppers because of the shipping backlog stemming from the California ports.
One manufacturing company is facing monthslong delays, which could affect those buying electronics.
NAS Electronics in Las Vegas provides materials to companies that make electronics like home audio systems, refrigeration sensors and smart bathtubs.
"The slow down at the ports has been a lot longer than we thought it would take," said Jeff Wayne, the CEO of NAS Electronics.
He says they usually see a spike this time of year in audio amplifier purchases — a great holiday gift that shoppers may have a hard time getting their hands on.
"[It’s taking] six to 12 weeks to get the products in and then three to four weeks to actually build them, so it’s causing a pretty major delay especially for some of our customers who are consumer-focused," Wayne said.
CALIFORNIA SHIPPING BACKLOG HITS MANUFACTURING BUSINESSES
August through November is the peak shipping — and shopping — season, according to the National Retail Federation.
Jonathan Gold, vice president for supply chain and customs policy at the NRF, says some retailers started bringing in products as early as June, and some of the larger retailers such as Home Depot and Walmart have bought their own container ships.
"The consumer demand has increased even more this year than what we saw last year," Gold said. "And that is certainly fueling the ongoing challenges that we’re seeing because the imports are skyrocketing beyond what we saw last year."
FEDEX, UPS, USPS RELEASE DEADLINES FOR HOLIDAY SHIPPING
Last year, 22 million shipping containers passed through the ports. This year, the NRF says that’s looking more like 26 million.
To keep up with demand, NAS Electronics is working overtime.
"You’re probably going to see a lot of things on backorder," Wayne said. "You’re probably going to see a lot of ‘Oh, I bought this gift for you,’ instead of actually having a gift in a package."