Hurricane Sandy is Affecting Retail Supply Chains

The effects of Hurricane Sandy are being felt up and down the East Coast, not only by families whose neighborhoods have been affected, but also by businesses. Ports are still closed and containers cannot arrive or have been lost. Warehouses are flooded, have no power or are not accessible. Suffice to say, the supply chain has been hit hard at a crucial time. Businesses are being told that their deliveries have been delayed or that they may not arrive at all. They are having to go back and tell their customers they may not be able to fill their orders.

Worst of all, business are not even sure they will be able to restock in time for the holidays, which will be rapidly upon us. Small and large businesses may face their worst holiday season ever. While some have started to reopen, others are still without power. The larger retailers should have enough inventory for their regular replenishment items, but it is expected that there will be out-of-stock situations for items that are promotional, such as items that were to be sold for Thanksgiving or Black Friday, maybe even some for the December holidays.

These delays are also resulting in an increase in rates from third-party carriers. Many carriers are suffering from a shortage of capacity and fuel affecting their service to their customers.

The effects of Sandy are causing a ripple effect through the supply chains of the East Coast, and it looks like it could be some time before things get back to normal.

To learn more about how Hurricane Sandy is impacting retail supply chains, read this article from the New York Times: A Storm-Battered Supply Chain Threatens the Holiday Shopping Season.

Written by Christopher Merritt.