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Heart attack in US logistics

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Heart attack in US logistics

The largest warehouse complex America overcrowded, and America’s largest businesses are warning that sales of clothing, electronics, furniture and many other consumer products that have filled distribution centers east of Los Angeles are slowing. Trade pundits have long warned that the US supply chain will suffer if businesses frantically order items on their shelves and end up with a slowdown in demand while continuing to receive bulk orders from Asia. Looks like it’s time for the largest US storage market east of Los Angeles.

This area is experiencing unprecedented growth and includes an industrial corridor of 1.6 billion square meters. warehouses ranging from the bustling coastline of Los Angeles to the border of Arizona and Nevada. But consumers are starting to cut back on spending, and these chaotic warehouses are in danger of becoming overstocked with goods they can’t handle. The market is expected to become even more stifling as the clientele of large department store chains such as Walmart and Best Buy, among many others, began to reduce purchases and lose the buying rush that they had in the first waves of the crisis. pandemic.

More generally, of course, consumer spending in the superpower remains above pre-pandemic levels, but retailers and suppliers are sounding the alarm about large inventories of out-of-fashion goods as consumers begin to travel while inflation is at its highest level in the past 40 years. years. Although the US economy had already begun to slow down, products continued to enter the US market at an unprecedented rate. During the first half of the year, imports at US ports with container terminals handling retail goods from China jumped more than 26% from pre-pandemic levels.

The cargo overflowed the largest complex of American ports in Los Angeles – Long Beach. During the first half of the year, dock workers handled about 550,000 large containers more than before the pandemic. Loads of Christmas toys, winter holiday merchandise, Walmart furniture and more arrived in July.

Author: LISA BERTHLEIN / REUTERS

Source: Kathimerini

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