The U.S. increasingly receives goods from all around the globe. Here at Alba Wheels Up, we bring billions of dollars of goods to the United States ranging from apparel to footwear and accessories to electronics and food items. The most common are apparel-related and consumer products. Salvatore J. Stile, our president, and chairman talked to Long Island Press about the current supply chain crisis, and what consequences this can bring to consumer prices.
Current port delays causing a supply chain crisis
He states most of the goods being imported are probably experiencing about 50 to 60 days of delays as of now. Something that would take from door to shelf in the ocean in 30 days now takes close to 80. Factories have been shut down. There were allotments for electricity where they worked at 60 percent capacity. Steamship lines may schedule six ships to LA but only send four.
The LA ports are like a clogged drain. There’s been a lot of blank sailings where steamship lines don’t send vessels because they either don’t have enough commitment to fill them or they want to keep the ocean freight rates at a stabilized level.
Supply chain crisis impacting the consumer goods prices
When talking about the impact this can have during 2022 for the import community he mentioned “I see trouble ahead, not only for the import community but the consumer. I see rates staying high. I see the lending community going to pull back on advances to importers. They’re concerned. This can’t be an ongoing situation. A lot of importers haven’t been passing on higher rates to retailers. You could see another 5 to 10% bump in consumer goods prices.”
During these difficult times, here at Alba Wheels Up, we’ve helped finance clients with credit terms, because freight is five times more than it used to be. These clients rely on us for financial support and speed to market. We get goods delivered to market quicker than a lot of our competitors. We do that by planning shipments from export with technology, so we can anticipate what trucks are needed, reserve space, pick up goods at the terminal, and clear goods before they arrive at the port.
He also added “We’re strong in the Section 321 program, a direct-to-consumer program. If you’re an importer and know who your client is before goods ship from the country of export, if the eligible merchandise is under $800 in value, there’s no duty on the product. If you bring in a container of women’s knitted blouses from China, the total tariffs and duty would be $29,000 or $30,000. If you utilize the section 321 program, effectively, it would be zero.”
About Sal Stile II
Sal Stile II is the founder, president, and Chairman of the Board for Alba Wheels Up® International. With decades of regulatory experience and a keen perspective to forecast market trends, Sal is a relentless advocate for his clients’ success. He has helped to position Alba Wheels Up as a leader in the customs broker and freight forwarding industry.
For more information about the current shipping situation that is affecting retail importers, including immediate and timely solutions to bring your goods into the U.S. faster to your store aisles, contact Alba today.
This article was written based on the publication from © 2021, Long Island Press “Valley Stream Shipping Company Prez Talks Delays in International Importing” Originally published on [December 27th, 2021] by Claude Solnik. access source here: Long Island Press
