Holiday goods on stalled ships will likely never make it in time
Port congestion in Southern California appears to have changed little over the last week.
Driving the news: The total number of container ships at anchor or loitering within 40 miles of Los Angeles and Long Beach dropped to 35 Monday, down from a peak of 86 on Nov. 16, according to data from the Marine Exchange of Southern California.
Yes, but: The nonprofit organization, which helps facilitate activity for four major ports, put a new queuing system in place last month to push awaiting ships further off-coast in an effort to cut emissions and improve maritime safety.
- There are 59 “loitering or slow-speed-steaming” container ships outside the new Safety and Air Quality Area, for a total of 94 ships backed up (down from 96 on Friday).
Why it matters: Holiday goods still sitting on boats will likely never make it in time.
- Now, companies that may have over-ordered in response to supply chain constraints risk facing an inventory glut come January.
What we're watching: Which retailers get caught with oversupply.
- "Nobody wants to write down inventory after Christmas," Jaime Katz, a senior equity analyst for Morningstar, tells Axios.
- Holiday Barbies, for example, are not going to sell for full price after the holidays.