Ocean Freight Update – February 2, 2021

Dear Valued Customer,

We hope that you are continuing to stay healthy and 2021 is off to a great start. As we committed, this is our monthly update of Gerson’s, and the industry’s ocean freight status. Inbound ocean freight from Asia continues to be a major focus for The Gerson Companies and all other US importers. If you missed our letter last month, here is the link explaining the causes for the industry wide delays.

For starters, we continue to receive product availability requests for immediate shipments from customers. See link below for what we have in inventory available to ship at once. Please contact your salesperson, visit us online, email gersoncs@gersoncompany.com or feel free to call us at 800.444.8172 to place an order.

Link: https://app.salsify.com/catalogs/8508139d-dcca-4197-8355-3cd7f7c62c16/products?filter=%3D&page=1

During the Atlanta Market, we received very positive feedback regarding our “state of the industry” communications to inform and educate our customers on challenges to our industry. As your partner, we believe it is our responsibility to not only bring you exciting product and the best prices, but also to keep you informed anytime there is a current event that we think may impact our business together.

Currently, we are experiencing delays of 13-14 days on some Spring/Summer containers. This situation is not limited to the seasonal, home décor, and gift industry, as our customers have shared similar experiences with many other product areas in their store. Our company is taking an additional step in trying to facilitate deliveries. We are now paying “premium fees” for what our freight forwarders tell us is a better chance of our containers being loaded on the ship and receiving priority status. We do not know, if this is truly helping, but we are not taking the risk of being left behind. This fee is an extra $2,000 per container, in addition to the 80% freight increase from a year ago. This makes me wonder if we are in the wrong business!

With Chinese New Year upon us, we anticipate continued impact on shipping once workers return to the factories. We will update the situation next month. Although we never love sharing this type of news, we believe it helps in your planning purposes and to keep abreast of major challenges in the supply chain. Our distribution center team is working an extra shift to expedite the delivery to your stores. Please contact your account manager or email us at gersoncs@gersoncompany.com if you have any questions.

We hope to see you in our showrooms in Olathe (Las Vegas January Market was cancelled) in the coming weeks to shop our Seasonal and Everyday assortments! If you are unable to visit us in person, GersonCONNECT (https://gersoncompany.com/connect/) will allow you to view our products virtually, in catalogs, and presented by our sales team.

Best regards,

JJ Hjalmarson

Vice-President, Key Account Sales and eCommerce

Gerson February Freight Letter