Year-End Woes

by Tom Moore on Nov 16, 2020 7:00:00 PM

Year-end will be tough for direct-to-consumer businesses…

Year-end will be tough for direct-to-consumer businesses:

Cardboard lead times are getting much longer
Delivery (UPS/FedEx/etc.) is projecting capacity constraints despite adding 99K people since February)
Staffing in warehouses is under pressure (they added 28K jobs in October – but there is some relief in the form of small, highly automated “neighborhood” warehouses in places like Brooklyn NY

Some B to-B businesses are seeing challenges too:

Finding an export container is increasingly hard as they are needed back in China for high-value goods. Low-value exports like soybeans have to wait
In the metals area (e.g., Steel, Aluminum, Nickel), transaction Insurance, normally held by Banks and suppliers, is much more expensive as worries about default rise.

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