COVID-19 Continues to Disrupt the Supply Chain
UPDATE: The Supply Chain is Still Being Disrupted by the Pandemic
For anyone who has a project that needs raw materials, unfortunately, Covid19 has significantly slowed down the supply chain. This disruption means that in quarter one of 202, customers are still waiting longer and in many cases are facing increased prices.
Manufacturing is and will continue to face this disruption until the pandemic is more under control.
Steel surcharges have increased and have reached levels not seen since 2008. Many Lozier products are being affected. Because manufacturers cannot get the materials needed to make the products, orders are being delayed. There’s also a lack of supply for wood products and other raw material costs.
State of Shipping in Los Angeles/Long Beach
There are 30 vessels at anchor in the LAX/LGB harbor awaiting space to berth. On average, ships are sitting at anchor for a week before they can dock. Terminals are working with limited labor and split shifts due to a spike in COVID cases. Vessel operations and truck turn-times are lengthy. We are currently seeing a 3 to 4-week delay in rail operations as well. The situation is expected to continue into March 2021.
Current Rules in China Causing Further Delays
The Chinese government has announced that all domestic travelers must complete a 14-day self-quarantine if they are traveling between provinces that are said to be high-risk for COVID-19. This is causing significant disruption to the supply chain as factory workers and truck drivers who are affected by the rule are having stop working to quarantine before returning home for the Chinese New Year holiday. This is leading to factories closing early due to a lack of workers and a severe shortage of drivers to haul containers.
What Businesses Can Expect
For those starting businesses, expanding businesses, or merely maintaining businesses this is a challenge that presents itself in different ways. Retail stores, grocery stores, convenience stores, liquor stores, and pharmacies are all being affected. It can be very frustrating when it is time to order that new display case or replace a clothing rack. Materials simply are not available to meet the demand, so it is taking longer to fulfill orders.
As your trusted provider of fixtures, Display Connection is committed to doing everything we can to ensure the best possible service, quality, pricing, and delivery. We are working hard to fulfill orders. Know that customer satisfaction is very important to our team and your patience during these challenging times is appreciated!
Should you have any specific questions or concerns regarding orders or product availability, please do not hesitate to contact us.