Logistics disruptions' impact on apparel supply chains
Access valuable data for informed decisions through our portfolio. Apparel industry's sourcing patterns and seasonality expose firms to shipping disruptions. Delays are expected during peak sales season due to longer shipping times. Firms discussing supply chains in a cautious manner, with challenges in higher costs. Strategies to mitigate costs and delays include changing transportation routes and adjusting sourcing practices. Importers in the US opting for west coast shipping to avoid canal issues.
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FAQs about Logistics Disruptions' Impact on Apparel Supply Chains - S&P Global
Frequently Asked Questions (FAQs)
1. What percentage of EU imports of apparel and footwear are affected by disruptions in Asia by sea through the Suez or Panama Canals?
Answer: Shipments from Asia that may need to use the Suez or Panama Canals accounted for 51.0% of EU imports of apparel and footwear.
2. How do logistics disruptions impact the apparel supply chains?
Answer: Logistics disruptions can lead to delays in shipments, increased transportation costs, and shortages of apparel and footwear inventory in the market. These disruptions can be caused by a variety of factors including strikes, geopolitical events, or interruptions in maritime shipping routes.
3. What could be the global scale impact of local labor strikes on apparel supply chains?
Answer: Local labor strikes, such as the U.K. port strike mentioned in the Flexport research, can have significant global impacts on apparel supply chains. They can cause substantial delays in the delivery of goods, disruption in logistics networks, and can take several weeks for normal operations to resume.
4. What are the broader effects of COVID-19 on global freight transportation and logistics?
Answer: The COVID-19 pandemic has caused substantial disruptions in maritime shipping and air freight. The pandemics led to a reduction in transport capacity, changes in trade patterns, and heightened delays due to additional health and safety measures.
5. What role does the Bill of Lading database, PIERS, play in understanding logistics disruptions?
Answer: The Bill of Lading database, PIERS by S&P Global, helps in tracking and analyzing import and export data related to global trade and can be used to understand the patterns and impacts of logistics disruptions on various supply chains, including the apparel industry.
6. Are there any other industries that are susceptible to logistics network disruptions similar to the apparel sector?
Answer: Yes, other industries are similarly susceptible to logistics disruptions. For instance, Israel's pharmaceuticals supply chain, worth over $2 billion, is particularly affected. Additionally, electronics and healthcare sectors face risks from geopolitical tensions.
7. How long can logistics disruptions affect the apparel supply chain?
Answer: The duration of the impact can vary depending on the nature and severity of the disruption. The information provided mentions that, in some cases like the proposed strike in the U.K. port, it could take several weeks for the supply chain to recover.
Please note that these FAQs are based on the information provided through the links and may not reflect the latest details outside of what was shared. For the most recent information and reports, accessing the full articles and research at S&P Global's website and other relevant industry sources would be recommended.