CHANGES in buying patterns in the US that may be permanent
as a result of soaring e-commerce volumes amid the Covid-19 that
has affected the timings of shipments could shift the traditional peak import
periods.
This was the message at a recent session of the JOC's
virtual TPM21 conference from industry veteran, Ron Widdows, CEO of
FlexiVan Leasing, an intermodal chassis-owning specialist based in Scottsdale,
Arizona.
He pointed out that there have been fundamental changes in
consumer spending as a result of the Covid crisis, and those changes will need
to be factored into US supply chains.
"There are indications the strength of the flow will
continue through the first half of the year. For example, we have large customers
looking at year-over-year growth of 25 to 30 per cent. We have customers
already ramping up to their peak volume in home improvement, with volume at the
same level as the peak period in 2020," Mr Widdows said.
While the emergence of e-commerce in a significant way has
changed demand patterns, it is also driving development in merchandising,
warehousing, and distribution.
"Right now there is an explosion in the development of
distribution centres, as many traditional retailers now need fulfilment capability
because they have shifted to more of an e-commerce model.
"Those changes will cause differences in the timing of
peaks, with differences between the slack and the peak season, and that is
going to keep some stress on assets, and certainly on things that are most
obvious to shippers, such as ship space, chassis availability, truck power and
the ability to move their goods through their networks."
The networks are under severe pressure, with the ports of Los
Angeles-Long Beach heavily congested and the volume overwhelming the
inland logistics chain. Those conditions were unlikely to improve in the short
term, Mr Widdows said.
"This year will be all about volatility," he
said. "This year the stress of the networks will easily continue through
the first quarter, and some believe through mid-year, and all of this has
something to do with the economic stimulus and to what degree that has an
influence on the market."
Source : HKSG / Photo : Transport Topics.
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