Yahoo Finance Supply chain delays: 'We don't see it actually improving' for months, luxury brand CEO says
A reduction in the backlog of container ships awaiting access to the ports of Los Angeles and Long Beach California in early 2022 offered hope that supply chain disruptions would sort themselves out sooner rather than later.
But that hope is fading — and impacting brands and businesses across the spectrum. On its recent earnings call, Capri Holdings (CPRI) CEO John Idol said, "In terms of the inventory flow, this supply chain situation is going to continue on for at least the next six months. We don't see it actually improving. Many of the ports are quite backed up." Brands in Capri's line-up include Michael Kors, Versace, and Jimmy Choo.
'Everything is going to go through the roof'
Many U.S. retailers are still waiting for deliveries of spring and summer merchandise, including shorts, sandals and other gear to arrive.
According to the Wall Street Journal, nearly half of the spring line that New York clothing chain Untuckit planned to feature in its March catalog hasn’t yet arrived from Vietnam. Meanwhile, Macy's (M) is facing shortages of women's shoes, handbags, and toys, according to its CEO.
America's trucker shortage is also a factor, causing even further delays getting goods from the ports to their distribution centers.
And the war in Ukraine will only further exacerbate supply chain woes. Energy prices are soaring around the world due to the country's conflict with Russia, a major source of oil for various parts of the world.
"This whole supply chain is obviously going to have an inflationary impact on the U.S. economy, but globally, oh my gosh," Kona Haque, ED&F Man head of research, said on Yahoo Finance Live recently. "It's freight, it's the cost of shipping — everything is going to go through the roof."
Karina is a reporter for Yahoo Finance. Follow her on Twitter @karinamitch
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