Retailers are now assessing the financial damage to their brands following the West Coast Port shutdown and the tentative resolution of work that was recently agreed upon at 29 West Coast ports. The slowdown was the result of an impasse in negotiations between 20,000 port workers, represented by the International Longshore and Warehouse Union, and West Coast port operators.
The most immediate effects of the slowdown and the resulting backlog of shipments are being felt in perishable goods. Fruit and vegetables have a limited shelf life (even if they are refrigerated during shipment) so delays moving these goods from container ships to consumers increases losses for vendors due to spoilage.
We should also point out that retailers and vendors of seasonal goods are likewise facing a negative impact as a result of the slowdown. Retailers of footwear, furniture (particularly 
case furniture) and toys are likely to see their margins decrease. The full impact on these retailers may not be known for months as logistics and transportation networks struggle to cope with the backlog of goods.
We are anticipating margins and financial performance being negatively impacted as vendors struggle to deliver goods to their retail channels or retailers are forced to source goods from alternative vendors at a potential higher cost. We will begin to see the ramifications of the slowdown on financial statements released in the coming weeks. To read more of this blog post, go to cit.com/pov
