Billions of dollars of inventory is sitting on ships waiting at seaports and taking much longer to get to factories and stores as congestion at ports and in inland distribution networks slows the flow of goods. Logistics experts say that is pushing buyers and suppliers to extend their payment terms and obtain new financing that expands the cost of carrying inventory.
The value of retailer inventories fell to a nearly five-year low in June 2020, according to Commerce Department figures. Inventory levels have recovered since then, but the total $642.8 billion in inventories U.S. merchants held in December 2021 was still below pre-pandemic levels and the ratio of inventories to sales remains near the lowest point in records going back 30 years.
Dover, Del.-based furniture seller Monroe & Kent Home recently spent $40,000 on gray console tables from China that were supposed to reach its Los Angeles warehouse this April. They now are due to arrive in August or September due to container shortages.Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology.