{"id":5477,"date":"2023-01-24T14:59:30","date_gmt":"2023-01-24T14:59:30","guid":{"rendered":"http:\/\/siships.com\/blog\/?p=5477"},"modified":"2023-01-24T14:59:30","modified_gmt":"2023-01-24T14:59:30","slug":"excess-inventory","status":"publish","type":"post","link":"https:\/\/siships.com\/blog\/excess-inventory\/","title":{"rendered":"Excess Inventory Slows Global Demand"},"content":{"rendered":"

[vc_row full_width=”stretch_row_content_no_spaces” el_class=”blog_first_row”][vc_column el_class=”How to Avoid Snags when Shipping Overseas”][vc_custom_heading text=”Excess Inventory Slows Global Demand” font_container=”tag:h1|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal” el_class=”blog_detail_heading”][vc_single_image image=”5478″ img_size=”3924×2943″ alignment=”center” el_class=”blog_detail_img”][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Quiet Lunar New Year in Store for Shippers” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” el_class=”blog_detail_heading”][vc_wp_text]Inflation and the possibility of a recession are leading to excess inventory. Demand for products of all kinds surged since the start of Covid in March 2020. Buyers could not keep stores stocked. However, Q4 2022 indicated the historical demand we have seen recently has come to a stop.<\/span><\/p>\n

Last year\u2019s Lunar New Year was seen as a return to normal, giving hope for a year of smooth sailing. Unfortunately, thanks to a multitude of factors such as confusion around China\u2019s zero-Covid policy and the largest ground war in Europe since World War II breaking out, the global economy is on even more tenuous ground than before.\u00a0<\/span><\/p>\n

Everywhere is faced with a surplus of goods and not enough places to move it.<\/span>[\/vc_wp_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″ el_class=”left_cont”][vc_custom_heading text=”Slower Sales Leads to Full Warehouses” font_container=”tag:h3|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:400%20regular%3A400%3Anormal”][vc_wp_text]In a typical year, January can be one of the busiest months for global shippers. There are two reasons why. First, retail locations are looking to restock after a busy holiday season. Second, most\u2014if not all\u2014factories in China close for Lunar New Year <\/a><\/span>celebrations.\u00a0<\/span><\/p>\n

Many retailers fell short of their projections and saw significant year-over-year drops. Nordstrom shares fell<\/a><\/span> upon the announcement of contracted net sales during Q4 2022. Profit margins were slim due to a combination of slower sales and then subsequent markdowns to move year-end merchandise. Nordstrom is not alone in these woes. Fellow retailers, like Macy\u2019s and Lululemon, have already warned investors to temper their expectations on earnings reports. Even popular automakers, like Tesla <\/a><\/span>who operate their Gigafactory in Shanghai, missed their projected sales numbers by tens of thousands of vehicles.<\/span><\/p>\n

The Year of the Rabbit arrived earlier than usual, with festivities beginning on January 21st. Compare this to 2022, when the holiday arrived during the second week of February. With this compressed timeline and depressed sales, there was not enough time in warehouses to clear inventory. Many buyers are reasoning they will be able to restock when factories fully reopen in mid-February.<\/span>[\/vc_wp_text][vc_custom_heading text=”Inflation Curbing Spending” font_container=”tag:h3|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:400%20regular%3A400%3Anormal”][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”5488″ img_size=”3992×2242″ el_class=”blog_detail_img”][\/vc_column][\/vc_row][vc_row][vc_column][vc_wp_text]The pattern of belt-tightening and slowing sales will continue as long as global economies are rocked by inflation. Unfortunately, economists do not see a quick pathway to limit inflation at the moment.\u00a0<\/span><\/p>\n

Biden\u2019s White House and a highly partisan House of Representatives are currently engaged in a standoff on the debt ceiling. Both sides have said they will not budge; Biden cites the current debt was inherited from past congresses and House Republicans are looking to shrink the debt by cutting social benefits and services. In the meantime, Secretary of the Treasury Janet Yellen is deploying all of the tricks possible to stave off the United States faulting on its debt. If the world\u2019s largest economy were unable to cover their debts, it would send shockwaves felt by governments, businesses, and individuals around the world.<\/span><\/p>\n

Senator Mitch McConnell expressed optimism last week about the situation. He stated, \u201cthe important thing to remember is that America must never default on its debt. It never has, and it never will.\u201d<\/span>[\/vc_wp_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″ el_class=”left_cont”][vc_custom_heading text=”How to Adjust to Excess Inventory” font_container=”tag:h3|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:400%20regular%3A400%3Anormal”][vc_wp_text]The real mistake would be to see this situation as a complete negative. Softening demand, even during the logistically tricky Lunar New Year, is leading to lower prices for shippers. January and February 2023 are an excellent time to set yourself up for success in the spring and early summer. Blanked shipments <\/a><\/span>indicate the possibility of a recession, but provide an opening for those with operating capital.<\/span><\/p>\n

It might not be possible to place orders if you are struggling to find adequate warehouse space. However, it is possible to use laws like the Ocean Shipping Reform Act of 2022 <\/a><\/span>to your advantage. Created to ease costs incurred from port congestion, it is possible to avoid detention and demurrage fees for your cargo. Knowing how to navigate these choppy waters can set you and your company on the right course in 2023.<\/span>[\/vc_wp_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”5486″ img_size=”full” el_class=”blog_detail_img”][\/vc_column][\/vc_row][vc_row el_class=”third_row”][vc_column][vc_custom_heading text=”How SiShips Gives You the Advantage” font_container=”tag:h4|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:300%20light%20regular%3A300%3Anormal”][vc_wp_text]Sheltered International combines expertise with state of the art software to bring you quality domestic and international shipping solutions. SiShips puts the shipper in control, offering efficient and cost effective ways to ship your product.<\/span><\/p>\n

To learn more about managed transportation with SiShips, or to view a demo of our software, contact us<\/a><\/span>\u00a0today.<\/span>[\/vc_wp_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

[vc_row full_width=”stretch_row_content_no_spaces” el_class=”blog_first_row”][vc_column el_class=”How to Avoid Snags when Shipping Overseas”][vc_custom_heading text=”Excess Inventory Slows Global Demand” font_container=”tag:h1|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal” el_class=”blog_detail_heading”][vc_single_image image=”5478″ img_size=”3924×2943″ alignment=”center” el_class=”blog_detail_img”][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Quiet Lunar New Year in Store for Shippers” […]<\/p>\n","protected":false},"author":186,"featured_media":5478,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24],"tags":[40,81,226,225,227,50],"yoast_head":"\nExcess Inventory Slows Global Demand - SiShips<\/title>\n<meta name=\"description\" content=\"Stay prepared for unexpected events when shipping overseas with Sheltered International.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/siships.com\/blog\/excess-inventory\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Excess Inventory Slows Global Demand - SiShips\" \/>\n<meta property=\"og:description\" content=\"Stay prepared for unexpected events when shipping overseas with Sheltered International.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/siships.com\/blog\/excess-inventory\/\" \/>\n<meta property=\"og:site_name\" content=\"SiShips\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-24T14:59:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/siships.com\/blog\/wp-content\/uploads\/2023\/01\/pexels-kindel-media-9716369-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1920\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sheltered International\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/siships.com\/blog\/#website\",\"url\":\"https:\/\/siships.com\/blog\/\",\"name\":\"SiShips\",\"description\":\"Logistics Provider\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/siships.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/siships.com\/blog\/excess-inventory\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/siships.com\/blog\/wp-content\/uploads\/2023\/01\/pexels-kindel-media-9716369-scaled.jpg\",\"contentUrl\":\"https:\/\/siships.com\/blog\/wp-content\/uploads\/2023\/01\/pexels-kindel-media-9716369-scaled.jpg\",\"width\":2560,\"height\":1920,\"caption\":\"Excess inventory stacked in shipping containers beside an empty road.\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/siships.com\/blog\/excess-inventory\/#webpage\",\"url\":\"https:\/\/siships.com\/blog\/excess-inventory\/\",\"name\":\"Excess Inventory Slows Global Demand - SiShips\",\"isPartOf\":{\"@id\":\"https:\/\/siships.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/siships.com\/blog\/excess-inventory\/#primaryimage\"},\"datePublished\":\"2023-01-24T14:59:30+00:00\",\"dateModified\":\"2023-01-24T14:59:30+00:00\",\"author\":{\"@id\":\"https:\/\/siships.com\/blog\/#\/schema\/person\/ad560f64a71bf22da416314436b330c6\"},\"description\":\"Stay prepared for unexpected events when shipping overseas with Sheltered International.\",\"breadcrumb\":{\"@id\":\"https:\/\/siships.com\/blog\/excess-inventory\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/siships.com\/blog\/excess-inventory\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/siships.com\/blog\/excess-inventory\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/siships.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Excess Inventory Slows Global Demand\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/siships.com\/blog\/#\/schema\/person\/ad560f64a71bf22da416314436b330c6\",\"name\":\"Sheltered International\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/siships.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/32a849c5bb8bf71dddc425122b91b57d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/32a849c5bb8bf71dddc425122b91b57d?s=96&d=mm&r=g\",\"caption\":\"Sheltered International\"},\"url\":\"https:\/\/siships.com\/blog\/author\/kchambersmeerkatmediagroup-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Excess Inventory Slows Global Demand - SiShips","description":"Stay prepared for unexpected events when shipping overseas with Sheltered International.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/siships.com\/blog\/excess-inventory\/","og_locale":"en_US","og_type":"article","og_title":"Excess Inventory Slows Global Demand - SiShips","og_description":"Stay prepared for unexpected events when shipping overseas with Sheltered International.","og_url":"https:\/\/siships.com\/blog\/excess-inventory\/","og_site_name":"SiShips","article_published_time":"2023-01-24T14:59:30+00:00","og_image":[{"width":2560,"height":1920,"url":"https:\/\/siships.com\/blog\/wp-content\/uploads\/2023\/01\/pexels-kindel-media-9716369-scaled.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"Sheltered International","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/siships.com\/blog\/#website","url":"https:\/\/siships.com\/blog\/","name":"SiShips","description":"Logistics Provider","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/siships.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/siships.com\/blog\/excess-inventory\/#primaryimage","inLanguage":"en-US","url":"https:\/\/siships.com\/blog\/wp-content\/uploads\/2023\/01\/pexels-kindel-media-9716369-scaled.jpg","contentUrl":"https:\/\/siships.com\/blog\/wp-content\/uploads\/2023\/01\/pexels-kindel-media-9716369-scaled.jpg","width":2560,"height":1920,"caption":"Excess inventory stacked in shipping containers beside an empty road."},{"@type":"WebPage","@id":"https:\/\/siships.com\/blog\/excess-inventory\/#webpage","url":"https:\/\/siships.com\/blog\/excess-inventory\/","name":"Excess Inventory Slows Global Demand - SiShips","isPartOf":{"@id":"https:\/\/siships.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/siships.com\/blog\/excess-inventory\/#primaryimage"},"datePublished":"2023-01-24T14:59:30+00:00","dateModified":"2023-01-24T14:59:30+00:00","author":{"@id":"https:\/\/siships.com\/blog\/#\/schema\/person\/ad560f64a71bf22da416314436b330c6"},"description":"Stay prepared for unexpected events when shipping overseas with Sheltered International.","breadcrumb":{"@id":"https:\/\/siships.com\/blog\/excess-inventory\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/siships.com\/blog\/excess-inventory\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/siships.com\/blog\/excess-inventory\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/siships.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Excess Inventory Slows Global Demand"}]},{"@type":"Person","@id":"https:\/\/siships.com\/blog\/#\/schema\/person\/ad560f64a71bf22da416314436b330c6","name":"Sheltered International","image":{"@type":"ImageObject","@id":"https:\/\/siships.com\/blog\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/32a849c5bb8bf71dddc425122b91b57d?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/32a849c5bb8bf71dddc425122b91b57d?s=96&d=mm&r=g","caption":"Sheltered International"},"url":"https:\/\/siships.com\/blog\/author\/kchambersmeerkatmediagroup-com\/"}]}},"_links":{"self":[{"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/posts\/5477"}],"collection":[{"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/comments?post=5477"}],"version-history":[{"count":7,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/posts\/5477\/revisions"}],"predecessor-version":[{"id":5489,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/posts\/5477\/revisions\/5489"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/media\/5478"}],"wp:attachment":[{"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/media?parent=5477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/categories?post=5477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/siships.com\/blog\/wp-json\/wp\/v2\/tags?post=5477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}