Lululemon set to increase air freight to avoid port congestion in Asia

By Sean Galea-Pace
The apparel giants, Lululemon Athletica, is set to increase its use of air freight in a bid to avoid the expected port congestion in Asia due to expecte...

The apparel giants, Lululemon Athletica, is set to increase its use of air freight in a bid to avoid the expected port congestion in Asia due to expected tariff increases, according to Supply Chain Dive.

PJ Guido, Chief Financial Officer of Lululemon, has said that the move to air freight was to ensure on-time delivery of fall merchandise instead of being seen as an attempt to beat tariffs.

SEE ALSO:

In a first-quarter earnings call on Wednesday (12 June), Guido commented: We're anticipating port congestion right around the timeframe starting around the middle to the end of July and we think it's prudent and important to deliver new products for our guests to protect the sales associated with those goods. We're protecting our fall deliveries. And that's why we're doing it, it's a hedge and we're eliminating the risk.”

With the tariffs on Lululemon described as “moderate”, just 6% of the activewear company’s finished goods comes from China, with only 1% subject to tranche three tariffs.

Share

Featured Articles

Managing risk 'crucial' - Gartner Supply Chain Symposium

CSCOs hoping to navigate supply chain disruption must understand their organisation's appetite for risk, say analysts at Gartner Supply Chain Symposium

Air cargo resilience is focus of World Cargo Symposium

International Air Transport Association's World Cargo Symposium in London is focusing on using resilience to drive air cargo’s post-pandemic prospects

Sustainability measurements lacking, says EY survey

EY survey of supply chain leaders reveals need both for visibility on sustainability performance and a holistic business case to drive results

IBM CSCO & COO survey shows tech & sustainability key areas

Digital Supply Chain

Suppeco and Market Dojo partner on e-sourcing solution

Digital Supply Chain

Pitney Bowes Index shows China breaks 100bn parcels barrier

Logistics