UPS’s outlook for more supply chain disarray follows announcements from several other companies over the last week, including Toyota, which said Friday it will cut car output by 70,000 units in September and 330,000 in October because of ongoing virus disruptions and a chronic global semiconductor chip shortage.
Homebuilder PulteGroup, which has previously suffered shortages of lumber and glass, warned this week of slower home closings, saying “the supply chain issues that have plagued the industry throughout the pandemic have increased during the second half of the year.”
Apparel company Lululemon Athletica said coronavirus restrictions forced closure of factories in Vietnam, which account for one-fifth its inventory. The company is scrambling to shift some of that production to other manufacturing centers and also spending more on air shipments due to backlogs at shipping ports.
Price said one of the big dislocations during the pandemic has been the loss of shipping capacity on commercial jets, which typically deliver some cargo on international flights.UPS exec sees supply chain disarray extending into 2022 – Japan Today
The weakness of ‘just in time’ supply chains is beginning to become visible.