Supply Chain Issues for Big Retailers Create Unique Opportunities for Consumer Brands in 2021

Due to global supply chain issues and increased freight costs for shipments from Asia, many big retailers are already experiencing difficulty securing enough product in time for the holiday season, risking not being able to meet this year’s demand.

With imports at a record high in 2021, there is a shortage of containers carrying products to the United States, and containers at port are processed with a massive backlog. What’s more, prices for freight containers from Asia and other parts of the world have skyrocketed over the past 12 months.

According to the Drewry World Container Index, spot freight rates for a 40ft container from Shanghai to Los Angeles have increased by 242% since August 2020. Slow vaccine rollouts are also contributing to business closures and thus shifts in the supply chain from Asian countries.

With the 2021 holiday season being less than five months away, big name retailers are now seeking to fill their shelves with quality products from North American inventory, which creates new opportunities for U.S. based consumer goods businesses.

One of our partner brands specializing in craft, kids and art supplies was able to close a deal with a major retailer to provide already finished and shipped goods, ensuring that demand is met while accelerating its own growth and increasing sales. Available inventory must be based in North America in order to give retailers confidence that products will be delivered in time to fill their shelves.

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