'These systems are very fragile': Global supply chain disruption has local impact in lead-up to busy shopping season
With one of the busiest shopping seasons of the year approaching, filling shelves and orders these days may come with extra challenges for many businesses due to ongoing issues with global supply chains.
The pandemic has disrupted the worldwide movement of all kinds of products, and it’s not clear when those problems could be resolved.
Granville Island Toy Company owner Joanna Mileos said there are definite issues with supply at the moment.
“Whether it be containers, or whether it be factory shutdowns during COVID and they just haven’t had enough time to produce decent quantities,” she said. “It’s definitely been having a trickle-down effect, not just in toys, in everything, and I think we’re already seeing price increases right across the board.”
She said the cost of shipping containers has also gone up, at a time when there’s a shortage, and some suppliers are working on managing expectations.
“We’re already seeing suppliers who are telling us we’re not accepting any orders for the rest of this year,” she said. “There (are) suppliers who are sending out their availability lists on a regular basis to say, hey, this is what we have in stock, and we may or may not get any more products.”
University of Victoria associate professor Adel Guitouni says at the same time as the shipping slowdown, consumer demand has also surged.
“People are buying more stuff online and so on, because that money that was usually used for travel or other kinds of expenses, we are doing renovation, we are doing other things,” he said. “These systems are very fragile right now, and what we see today is just the symptoms of the fragility of the system.”
He said the strain on global supply chains pre-dates COVID-19, as companies outsourced for cheaper production, and the pandemic has only exposed weaknesses in the system.
“As we have been developing these chains, we did not invest at all in resiliency,” he said. “They have been built mainly for the sunny days.”
He said this situation could provide an opportunity for local and domestic industries to compete, and for consumers to think more locally.
“When you have a strained kind of system, if you start pulling, either someone has to give or it’s going to break,” he said, and added current supply chains also create pollution that contribute to climate change. “This is an opportunity for us to rethink all of this.”
Mileos said growing support for local businesses has been one positive during the pandemic.
Her advice for holiday shoppers this season is not to wait too long.
“The earlier the better this year, for sure,” she said.
CTVNews.ca Top Stories
A 'tragedy that can't be measured': North Bay's forever chemical problem is also the rest of Canada's
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
opinion How to use your credit card as a powerful wealth-building tool
Irresponsibly using a credit card can land you in financial trouble, but personal finance columnist Christopher Liew says when used properly, it can be a powerful wealth-building tool that can help grow your credit profile and create new opportunities.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Questlove was not happy with Drake and Kendrick Lamar's beef: 'Nobody won the war'
While some may have been excited and/or amused by the diss-track feud between Drake and Kendrick Lamar, the man many consider to be an elder statesman of hip-hop appears less than enthused about it.
Trump heading to Jersey Shore to rally 'mega crowd' in weekend break from hush money trial
After a long week in court, Donald Trump is heading to the Jersey Shore. And his campaign says he'll be joined by "tens of thousands" of his friends.
For moms-to-be, it's possible to take maternity leave without breaking the bank
Pregnancy is often an exciting and anxious time for parents-to-be. And while painting the nursery and choosing a stroller are typically on the agenda, experts say preparing financially for a maternity leave can help reduce stress later on as well.
Fine dining, at a new high. A Michelin-starred chef will take his cuisine to our upper atmosphere
Six guests are set to ascend aboard Spaceship Neptune to the stratosphere, where they will enjoy an immersive dining experience served up by Danish Michelin-starred chef Rasmus Munk.
Israel orders new evacuations in the southern Gaza city of Rafah as it prepares to expand operations
Israel ordered new evacuations in Gaza's southern city of Rafah on Saturday, forcing tens of thousands more people to move as it prepares to expand its operation and adding that it is also moving into an area in northern Gaza where Hamas has regrouped.