• 12/07/2022
• By wizewebsite
• 460 Views

Old clothes and shoes may still be useful.Nike et al.are due to the closed Vietnamese factory with the production of the month behind<

Tomas Bohuslav,

Who at the end of this spring decided to throw their old clothes into the garbage, with the prospect of giving back below 20 degrees Celsius, and has not yet done so, may be sorry.It may happen that the new jacket or shoes is properly waiting.As a result of pandemic, of course.

In the Czech Republic, although all months have been open for several months, but it is not in the world elsewhere.And to the displeasure of clothing companies and shoe manufacturers, such a situation is currently in Vietnam, a country whose cheap labor is many of them.

This state located in the area of Southeast Asia was one of the Covid premiements for a long time - in a good sense.Daily additions to the newly infected were counted in units than dozens.Since the beginning of the summer holidays, however, suddenly fired up.Around mid -August, the authorities registered up to over 16,000 newly infected people within twenty -four hours, which caused government and hygiene to act.The country thus found itself in a strict Lockdown, which also resulted in the closed local factory.And this is natural for western manufacturers (not only) shoes and clothing a large line through the budget.

As the CNN server, the American company Nike produces about three quarters of all its shoes in this part of the world.Twenty -four percent of production is in Indonesia, and another fifty on Vietnam.But there are currently half of her factories out of service, which caused the company to get into a 10 -week slip.

The current numbers of new Covid cases are about a third compared to the situation here in the middle of the summer, and therefore the management of Nike expects that during October people will be able to return to work and gradually start production.But before all machines are busy, according to Matthew Friend's CFO, it can take several more months.

After all, that is why the company based in Oregon, North American, had to recently modify its economic view of the whole year.While previously counting on year -on -year growth in the order of tens of percent, despite the relatively strong demand, it will be more units, according to its estimates.

The goods are waiting for nearly three months

Nike is far from the only American manufacturer who found himself in trouble due to Lockdown Vietnamese.The constantly "evolving situation" must also be carefully monitored by Under Armor management and many others, including companies such as Deckers Outdoor, Columbia Sportswear and Capri Holdings.

"It is a very large partner of the United States," CNN quotes the head of the American clothing and footwear association Steve Lamar."It's our second largest source of clothing and shoes," he added.Many of this production to the US only goes from neighboring China.And it is now that Nike et al.They are starting to clamp, as recently informed the Supply Chain Dive.

However, the newly applied strategy will solve only part of their current problems.One thing is to have goods where to produce, the other to get it to home customers.Friend said for Seeking Alpha that while the transport of their products from Southeast Asia to North America took about 40 days, now it is twice as much.

"Transport times are increasing because of the lack of naval containers, clogged ports and railways and lack of workers, which affects our entire industry," he said at the end of September.

When it doesn't go by sea, it must go through the air

This is one of the reasons why many manufacturing companies and retail retailers - including such giants as IKEA - have decided to try something that seemed almost unthinkable for a year and a half: In addition to buying their own transport containers, these companies began to like the entire cargo ships for themselves.Of course, such a solution will become considerably more expensive, but the resulting costs will be less and less than potential losses resulting from insufficiently large stocks of production created before Christmas, traditionally the strongest sales period of the year.A number of customers could use something similar to buy a new few sneakers or winter jacket from the competition, which would then remain faithful.

"Carriers and importers continue to pay a record high premium prices just to get this urgent goods in time before the start of the holidays," Flexport.com wrote.True, Nike is not one of the above -mentioned companies, but its leadership has to improvise quite a lot recently.For example, the place of transport of goods by sea now betting more and more on airlines, which naturally pushes the cost of freight air transport steeply up.

Each kilo of Hong Kong to the US was released in September according to the Baltic Exchange Air Freight Index at $ 9.74, which indicates more than 85 percent year -on -year increase.In the case of air transport goods from Shanghai to the United States, companies have to prepare even eleven, most since last May, as reported by Aircargonews.net.