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

UST webinar on managing supply risk available on-demand

Global CPO David Loseby and UST's Jonathan Colehower share insight on using technology, both to mitigate supply chain risk and to gain supply visibility

Global land, sea and air logistics news round-up

Global logistics IoT spend ‘will top $32bn by 2032’; UN $10mn grant for explosion-hit Port of Beirut; Costa Rica ransomware attack causes ports chaos

Comfort zones the enemy of sustainability - CIPS economist

Cranfield economist John Glen tells procurement & supply managers that comfortable routines and relationships are unlikely to deliver sustainability goals

Women in supply fare better in large firms - Gartner report

Digital Supply Chain

What can be done to avert food catastrophe foreseen by UN?

Logistics

UST's Colehower shares supply risk insights in webinar today

Supply Chain Risk Management