CORONAVIRUS-RELATED production and transportation shortages could cost US retailers US$700 million in lost revenue between March 9 and April 20, warns digital freight forwarder Zencargo's chief of staff Patrick Hasani.
The extended shutdown of factories in China caused by the virus, travel restrictions on workers and cancelled sailings by shipping lines have dented the movement of containers, resulting in a surplus of empty containers at the port of Los Angeles and a shortage in Germany, reported The New York Times.
US-bound electronics, clothing and furniture have had the biggest supply chain interruptions, Mr Hasani said.
A Maersk Line spokesman said three large ships would be deployed to carry both full and empty containers from the United States back to Asia. It is too early to comment on further deployments, he said.
"We're only weeks away from a real tipping point," port of Los Angeles executive director Gene Seroka said of the empty container backlog at the busiest US seaport.
Lingering empties could clog up the vital Los Angeles trade gateway when China factory production rebounds - exacerbating the supply chain havoc from the coronavirus pandemic.
China accounts for 55 per cent of the lifts at the port of Los Angeles - which expects to have 41 cancelled ship calls during the first quarter, more than double the number in the same period last year. First-quarter container volume is forecast to have dived 15 per cent year on year.
Shipping consultancy Alphaliner expects further cuts to US west coast cargo capacity in April due to lingering coronavirus impacts.
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