09 February 2015

According to a Kurt Salmon analysis, the West Coast port congestion could cost retailers up to $7 billion this year, and by 2016, related costs could reach $36.9 billion over last year’s baseline cost. Frank Layo, a retail and supply chain expert at Kurt Salmon, indicates that, as a result, “We’re going to see more near-shoring [and] may even see more U.S. manufacturing” over the long term.

However, to avoid immediate price increases and mass out-of-stocks, retailers should explore air freight, consider other West Coast port options and eye the East Coast.

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