Chief executive officers can’t stop talking about supply chain, and for good reason — logistical challenges are threatening the very existence of some smaller companies that just got past the worst effects of the Covid-19 pandemic.
The soaring price of ocean freight has put pressure on most shippers of cargo, but especially on the smaller players that don’t have the cash on hand or scale to combat rapidly rising costs, counter delays or avoid transportation snafus. (Click here for Bloomberg’s full story.)
Experts that specialize in troubled companies are warning that we could see more financial trouble among those that don’t have the capacity to hire more warehouse workers, or even charter their own ship, to weather the turmoil. And as the holiday season approaches, it’s a make-or-break time for retailers.
“Anything retail-based that’s struggled over the past couple of years is hoping to have a gangbusters holiday season,” said Lucy Kweskin, a restructuring partner at law firm Mayer Brown. “Those are the companies that it’s going to affect the most.”
To read the full article on Bloomberg, please click here.