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

Supply Chain Problems Sees Partnerships Programme Grow

Kinaxis PartnerLink programme extended in face of volatile economic and political landscape for supply chains

Bain: CEOs Leveraging Supply Chain for Competitive Edge

Bain & Co report by Global Performance Improvement Head Hernan Saenz shows tough market is making supply chain a USP for progressive CEOs

Carlsberg Targets Supply Chain in its Drive to Net Zero

Brewing giant Carlsberg leveraging transparent supply chain technology to drive its bid to reach net zero carob emissions and ESG goals

SAP's new AI CO Herzig 'Will Drive the Tech to Next Level'

Technology

EY: GenAI in supply chain 'hampered by roadblocks'

Technology

Sustainability LIVE Net Zero to Focus on Scope 3 Insights

Sustainability