Do you see anything you need for the holidays? Buy it now, the experts advise

If you are used to doing your party Buying last minute, you may want to rethink that approach this year.

Thanks to COVID-driven supply chain problems spreading across the globe, late shoppers could have trouble getting everything from the latest iPhone to snow suits for their kids, artificial Christmas trees, and more. even a bottle of champagne for New Years Eve.

“This is a good year for gift cards,” said Fraser Johnson, professor of operations management at Western University’s Ivey School of Business.

The biggest contributor to supply chain problems is a shortage of shipping containers. Well, more accurately, a shortage of shipping containers in the right places.

According to Michael Broad, president of the Canadian Shipping Federation, the problem started in early 2020. In relatively rapid succession, China, neighboring Asian countries that dominate much of global manufacturing, and then the United States closed due to COVID. That meant the shipping containers that had transported Asian-produced goods to North America for the busy Christmas shopping season were still stuck here, empty. (In response to the blockades, carriers also cut their routes.)

Then in June 2020, when the US began to reopen and retailers began ordering products from Asian manufacturers again, there was a problem: The 40-foot containers needed to ship to waiting customers were no longer available.

All hell broke loose, logistically speaking, Broad said.

“The containers were stuck in the wrong place. People started asking for crazy things online, especially for their home. So the demand was huge, but most of the containers were still in North America, ”Broad said.

The shortage was exacerbated because COVID restrictions meant that ships were taking longer to unload their cargo at ports. And because of the slowdown, many retailers started asking too much, just to make sure they would get something, anything on their shelves.

Now, Broad said, the situation has eased a bit, but it is far from over.

“Things are slowly improving, but we are not there yet. Hopefully by the middle of next year, ”Broad said.

Things have gotten so bad that some US sportsbooks are even gambling on supply chain issues, including whether US President Joe Biden will order the US National Guard. That deploys trucks to help with the backlog of shipments, or if workers in the Port of Los Angeles. will go on strike in 2022.

In the meantime, Johnson said, if you want to avoid gift cards, your best bet is to shop now.

“My advice that I’ve been giving people is, if you see something that you think someone would like to buy for Christmas, buy it now, because it won’t be available in a few weeks,” said Johnson, a chain specialist supplier. who is also a director of the Ivey Purchasing Managers Index.

If you find something you like, expect to spend a little more money than usual. In September, the annual inflation rate reached 4.4 percent, the highest in 18 years, Statistics Canada recently announced.

According to Johnson and retail consultancy Lisa Hutcheson, there are seven categories of gifts you might have trouble finding this year if you wait too long:

CELL PHONES AND GAMING CONSOLES: Good luck trying to get that new iPhone 13 or a PS5. Or, frankly, any other cell phone, if you’re looking for the hottest new model. You can welcome a combination of shipping delays and a global shortage of silicon chips used in everything from phones to laptops to cars. That chip shortage, which existed to a lesser extent in pre-COVID times, has been compounded by the huge demand for electronics during the pandemic. Initially during the pandemic, some electronics manufacturers and auto companies temporarily shut down production; Now that they are back online, already low chip supplies are running out even more.

“Electronics is definitely one of the most talented categories around the holidays,” said Hutcheson, managing partner at retail consultancy JC Williams Group.

Also, Sony and Microsoft had major releases last November with PS5 and Xbox Series X and S, respectively, so many of those consoles were out of stock a long time ago.

ARTIFICIAL TREES: If you can’t find a gift to put under the tree this year, don’t worry, there might not be a tree anyway. At least not of the synthetic variety.

In addition to the problems shipping them from Asian countries, including China, Vietnam and Malaysia, where they are typically made, tree makers have also been grappling with a shortage of plastic resin used in the production of the trees. Most of the causes of the plastic shortage are related to COVID. Plastic, for example, is used in much of the personal protective equipment that helps slow the spread of the virus. Additionally, during the pandemic, consumer demand for single-use plastic has exploded due to safety concerns.

Decorations, including tinsel and trim, could also be in short supply, Johnson said.

TOYS: There could be a perfect storm for the toy shortage this year, Johnson warned. In addition to shipping problems and a shortage of plastic resin, many toys have electronic components (for example, silicon chips) embedded in them. Furthermore, the course of the pandemic has not been smooth in some of the countries where toys are normally made, he added.

“China is still dealing with COVID. Countries like Vietnam and Malaysia, where there is a lot of manufacturing, are still struggling with COVID. So we have stops at the plants; we have restrictions on their ports. So part of this is a manufacturing problem. But a lot of them are just logistical problems, ”Johnson said.

CLOTHING: That snowsuit you were thinking of buying for your son? The silk tie that you could get as a stocking filler for your return to the office? If you see them, get them now, Hutcheson advised.

Apparel retailers that have been dealing with intermittent closings for the past 19 months have kept a very tight inventory, Hutcheson said. But sales have been much stronger than expected in recent months as the North American economy gradually opens up. Combined with shipping problems, it’s a recipe for shortages, Hutcheson said.

“Many retailers may simply not be equipped for such a quick response,” Hutcheson said.

JEWELS: Are you looking for some nice earrings for that special someone? Maybe you’re finally going to propose? Do you want to treat yourself to surviving so far in a global pandemic? Put those jewels up now, Johnson said.

“It is a manufacturing and delivery problem. … Europe has been closed until very recently. A lot of the higher quality stuff comes from places like Italy or Belgium, ”Johnson said. “With things like engagement rings, gold chains, earrings, I think the selection will be limited and I think the prices will be high.”

ALCOHOLIC BEVERAGE: Looking for your uncle’s favorite single malt whiskey as a gift? A special bottle of Australian shiraz to go with a Christmas dinner? Or maybe some champagne for New Years Eve? It could still be at sea or in a shipping container, stuck in a backlog of ships in a west coast port. You may need to choose an alternative (for example, something local) to give away and drink during the holidays.

On October 17, the LCBO acknowledged in a letter to importers that global supply chain problems were affecting their shipment.

“These issues are resulting in an average three-week delay on container ships, with some locations experiencing a delay of up to six weeks,” wrote LCBO Supply Director Nick Nanos. In the world of spirits, tequila and single malt scotch are particularly affected. In the wine category, South Africa, Australia and New Zealand have received the greatest impact.

Some growers also have trouble keeping up with changing consumer demand during COVID, Nanos said.

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