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North Texas retailers predict supply chain shortages over the holidays – CBS Dallas / Fort Worth


by Robbie Owens | CBS 11

ARLINGTON, Texas (CBSDFW.COM) – Despite White House plans to clear the backlog of idling container ships in ports across the country, many North Texas retailers fear the supply chain solution will not come quickly enough.

“Christmas for our country is simply huge! I mean, this is the quarter where people succeed or fail, for the vast majority of businesses, ”says David Hanson, owner of Decorator’s Warehouse in Arlington. “I think there will be a lot of companies that won’t be there in the first quarter, the second quarter of next year. You just can’t do it if you don’t have the product to sell and now is the time of year to sell it.

Call it intuition or decades of experience, Hanson says he placed orders earlier this year and was almost fully stocked: until news of the supply chain chaos begins to spread.

This drives more new customers to the Hanson store when they can’t find wanted items in more familiar places.

“Demand is literally off the charts this year,” Hanson shares. “So we are not able to keep up. We have already sold a lot of things.

With container ships still in ports, Hanson says the economic implications are huge – across industries.

RELATED: Toys May Be More Difficult To Obtain In Time For The Holidays Due To Global Supply Chain Delays

Chip shortages have slowed the production of new cars.

Dallas ISD has changed its school lunch menu – serving more appetizers and less cereal and items requiring plastic cutlery.

Everything from plumbing and appliances to plastic and glass containers are included in reported shortages. And some experts say the problem won’t be solved just by putting the ships on dry ground – the products have yet to cross the country.

“Covid exacerbated a challenge we already had,” says Sherman Barnes, founder of AskTheTransporter, “which was a driver shortage challenge.”

Barnes is a logistics broker, one of the middlemen who work to get products from these on-hold ports to customers. He says the accompanying trucking crisis has been happening for some time.

“We need to do a better job of marketing truck driving and supply chain logistics as an industry,” says Barnes, “it’s starting to happen, but it needs to happen more. “

In the long run, Barnes says higher wages – already first-year truck drivers can make $ 60,000 a year and six-figure wages are common for experienced drivers – and lower the current age from 21 to commercial drivers could help attract more people into the industry. . But until those fixes are made, you can expect shortages in just about everything from electronics and packaging to decor. And yes, expect to pay more for the items that arrive.

“We’ve tried to eat a lot of it, but there’s no getting around the problem: my freight sometimes exceeds the cost of the goods in the container,” says Hanson. “Freight has gone from $ 5,000 per container to $ 30,000. That’s a 600% increase in freight right now. “Then showing a life-size pastel nutcracker,” some of the bigger items… my freight is $ 380 just to ship it. So you’re not going to see a lot of big items like this – they just don’t make sense to buy and ship. They are too expensive.

Nonetheless, buyers are advised not to linger if they see something they want.

“You’ve heard that before,” Hanson shares, “you better go out and get it because it won’t be around all season.”

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