US retailers prepare for the holidays by preparing their shipping plans.

As the U.S. East Coast port strike and Gulf Coast port strike continues, major retailers such as Levi Strauss and Costco have been preparing alternative shipping plans in order to make sure that goods are delivered on time during the holiday season. Container ships waited in long lines outside U.S. port facilities on Thursday, as the largest dockworker strike for nearly 50 years entered its third day. This prevented unloading of goods and threatened shortages of bananas, auto parts and other products.

Sky Canaves, an analyst at eMarketer, says that retailers account for half of the container shipping volume. Walmart, IKEA and Home Depot are among those who heavily rely upon East Coast and Gulf Coast port, according to Sky Canaves. Levi, a denim manufacturer that imports most of its product from Asia via the East Coast in the United States, has said it has made alternative plans. These include shifting routes to the U.S. West Coast and prioritizing specific ports. Levi isn't the only one to use this strategy. Costco said it had contingency planning in place, including pre-shipping certain products to get holiday goods in early and preparing for different ports.

In an interview on Wednesday, CEO Chris Peterson said that Newell Brands - which produces cleaning products like Rubbermaid buckets, garbage cans, and mops - contacted retailers such as Walmart and Lowe's to offer to increase production in the event of a shortage. Peterson, CEO of Atlanta-based Newell, said that the company manufactures the majority of Rubbermaid products in America, while other companies may be held up at ports.

He said that the retailers would "let us know if we need to rush in and assist." Peterson stated that the manufacturer could increase production by 50% in the near future.

He said, "We have safety stocks built up."

He said that the company's capacity could be increased by 20% in the medium- and long-term.

CHALLENGES IN SUPPLY CHAIN

The East Coast is the main port of entry for coffee into the United States. Prices are rising and shipments have been disrupted.

Folgers coffee maker J.M. Smucker has strategies in place for addressing potential supply chain challenges. These include confirming how much inventory is already available and ready to be shipped to retailers. They also adjust production plans to maximize the manufacturing of finished goods.

Michael Ashley Schulman is the chief investment officer of Running Point Capital Advisors.

He added that, depending on the length of the strike, retailers and auto dealers may have to reduce their holiday sales because they will not have enough stock.

Linda Bolton Weiser, D.A., stated that Mattel and Hasbro, two of the largest toy manufacturers, have limited exposure, as they import most of their products from China through West Coast ports in particular Los Angeles. Davidson.

Walmart, the largest retailer in the world by sales, said that it had prepared for any disruptions to its supply chain. It also maintained additional sources of supplies to ensure that it always has key products on hand.

Local media reported that some consumers bought extra toilet paper and paper towel products, out of fear for shortages. Most of the paper products, however, are made in the United States.

Nakia is an associate in Manhattan at Target who refused to reveal her last name. She said she noticed that shoppers were buying extra tissue, paper towels and canned foods. The shelves of the store were stocked.

Conagra Brands CEO Sean Connolly stated that he expected the company to be in a position to handle any disruptions with minimal impact, as they had planned ahead and worked with their suppliers.

A Tapestry spokesperson said that a modest strike wouldn't result in significant increases to costs or transit times as we have been pulling volumes forward throughout the summer, and we already received our holiday stock.

Home Depot, like Nike, said that it was closely monitoring the situation. Birkenstock refused to comment, while Best Buy and Target as well as the Dollar chains did not respond immediately to requests for comments.

(source: Reuters)