This year, 2021, has certainly had its ups and downs. We thought we had a handle on the pandemic, but surges kept coming. However, there were not as many lockdowns as we saw in 2020, and that reflects the fact that we are beginning to learn to live with the COVID-19 virus, which seems like it is not going away anytime soon.

Meanwhile, the global supply chain, which was already under pressure even before the pandemic struck, has seen even more pressure. According to an Insider report from early October, nearly half a million 20-foot shipping containers—or about 12 million metric tons of goods—were waiting in drift areas and at anchor in Southern California alone, for spots to open up along the port to dock and unload. This glut is due to several factors—shortages of labor and ground transport, as well as the fact that container ships carry more containers than ever before, and ports simply are not configured to handle the increased volume, even if labor and transport were available. It appears the end of the backlog is nowhere in sight. You can be sure that along with Christmas toys getting a lot of press, there are tons of textile and apparel products in those containers as well.

This further cracking of a fragile global supply chain has moved brands and retailers to step up any plans they had for three to five years out, placing increased focus on this issue, including not only the shipping backlog, but the state of relationships with key offshore suppliers that were damaged as orders were cancelled and contracts were ignored during the height of the pandemic. There has also been increased interest in reshoring at least some production in Europe and North America. The UK seems to be leading the charge in this respect. The only way these developed countries can really compete is to implement more digital technologies.