You can’t turn on the news without a new issue popping up around Chinese production and shipping issues. Daily we hear about ongoing Covid disruptions, ongoing power shortages, port congestion, shipping delays, new freight rate increases and now shipping container shortages.
I have compiled quotes from a few current articles to provide an overview of each of these ongoing issues. This isn’t a new problem, but with additional issues arising monthly it has compounded to the point where most US importers are feeling the shortages and delays. This is going to be a huge deal around the holiday season with vapes coming over on the same ships. It is apparent that some planning is needed to get ahead of anticipated delays and shortages.
BBC (Aug 2021): “the disruption to global supply chains is getting worse, spurring shortages of consumer products and making it more expensive for companies to ship goods where they're needed.”
Frieghtos.com (Oct 2021): “With ongoing pandemic-related delays and closures, non-stop demand for ocean freight from Asia to the US, and a lack of capacity, ocean rates are still very elevated and transit times volatile. “
Frieghtos.com (Oct 2021): “Basically, freight is really expensive, and capacity is incredibly tight. Many importers and exporters are willing to pay premiums in addition to these rates just to keep their goods moving, but with continued disruptions this is often not enough. Plus, with ships stuck waiting at US destinations like LA/Long Beach, importers and exporters are still struggling with the ongoing container crisis.”
NY Times (Oct 2021): “Power cuts and even blackouts have slowed or closed factories across China in recent days, adding a new threat to the country’s slowing economy and potentially further snarling global supply chains ahead of the busy Christmas shopping season in the West.”
How are Vape Shops, Vape Wholesalers, Manufacturers and Distributors Affected?
You have probably noticed occasional “hit or miss” inventory supplies from most manufacturers. It is hard to plan inventory amounts when shipments can be delayed weeks or months. The problem is industry-wide for any vape companies importing from China. What can make a difference is proactive planning to deal with the Chinese manufacturing/shipping disruptions.
What is Mi-Pod Wholesale Doing?
Looking to cyclical buying trends to see what types of products sell better around the holidays, and stock up on them in advance. Mi-Pod Wholesale has been maintaining higher inventory levels across the board and especially products we know will be in high demand. We are ordering earlier and more often to have product on-hand when you need it. We are also maintaining all our inventory at our US warehouse, so it ships from the U.S. to customers in a timely manner. This preparation is one of the many reasons why to choose Mi-Pod Wholesale as your disposable vape distributor and vape supplier.
What can vape shop owners do?
If there are items you know sell out early, you might consider maintaining extra inventory so cyclical production and shipping delays effect you less.
If you see high turnover items in stock, be sure to get them while the getting is good. Turnaround times for restocking your inventory may be longer due to the perfect storm currently underway. For example, if your store constantly is buying Elf Bars at wholesale prices, make sure to buy a bit more of the top-selling vape flavors on your next order.
If you see items in stock now, grab a few extra incase the China manufacturing, and shipping delays do not resolve themselves as quickly as we all hope they will.
As we roll into the holiday season be prepared, be proactive, and order accordingly to minimalize the hit on your sales from possible manufacturing and shipping delays.