Another Shipping Crisis Strikes, Threatening Delays to Black Friday Shopping

08/04/2021

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Weizhen Tan | CNBC

The 2021 holiday shopping season could be marred by out-of-stock goods and shipping delays as the recent floods in Europe and China exacerbate already strained global supply chains.

Western Europe and China’s Henan province — a key transport hub and home to several major businesses — are grappling with the aftermath of devastating floods.

The disasters have damaged railways used for the delivery of goods and raw materials in both regions. Water rushed into industrial areas extensively damaging facilities, machinery and warehouses, companies in the supply chain industry told CNBC. 

“Black Friday and the holiday season, for which products (and raw materials) are being staged, will face the brunt of the impact,” Pawan Joshi, executive vice president of supply chain software firm E2open told CNBC in an email. 

“Consumer electronics, dorm room furniture, clothing and appliances will all continue to be in short supply as back-to-school shopping starts up, and will trickle into the peak holiday shopping season,” he said. 

Delays from the distribution of raw materials needed to produce goods will have a cascading effect and disrupt supply chains “for weeks and months,” Joshi said.

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