Because of increased tariffs and global trade tension, shipping activity at major West Coast ports has drastically slowed, impacting local economies.
The decline in container ship traffic is already having major effects in Southern California, where trade and logistics supports about 900,000 people, generating $500 billion in economic output across the region, according to The Wall Street Journal reported.
With container volumes decreasing, businesses are cutting hours and even workforces connected to the ports. Dockworkers, truck drivers, warehouse staffers and even the pizza parlors that serve them are being impacted, according to The Wall Street Journal.
- For example, job orders for dockworkers at the Port of Los Angeles have dropped by nearly 50% with the port averaging just five ships a day rather than the typical dozen, Bloomberg reported.
Promotional products companies have been caught in the ripple effect, according to members of the Specialty Advertising Association of California. In addition to clients who depend on the ports being forced to scale back their spending with distributors, delays in importing certain products and raw materials have affected timelines, pricing and availability.
Amy Williams, CAS
CEO, AB Unlimited Worldwide
“We rely on a finely tuned supply chain, and when things get delayed at the ports, we feel it all the way through,” says Amy Williams, CAS, CEO of Las Vegas-based distributor AB Unlimited Worldwide.
“Even though we’re not on the docks or in the warehouses, our businesses are part of the broader ecosystem that’s impacted by every disruption. These slowdowns not only tighten turnaround times and increase shipping costs but also require more time spent managing client expectations and finding creative sourcing solutions – often domestically – to meet deadlines.”
‘Square Peg, Round Hole’
For distributors navigating port issues, creative solutions include sourcing from domestic suppliers with in-stock inventory and tapping into their network of nimble boutique vendors.
For example, during a recent delay, a client needed thousands of branded water bottles for a national fitness tour. The original overseas shipment was held up indefinitely, so Sherman Oaks, California-based distributor Caden Concepts quickly sourced a comparable U.S.-made option with in-stock inventory, re-routed production and managed to still hit the delivery deadline.
“We embrace a ‘square peg, round hole’ mindset not as a limitation, but as a strength,” says Lori Caden, CEO of Caden Concepts. “Where others see constraints, we see opportunities for innovation. If a solution doesn’t exist, we create it.”
Lori Caden
CEO, Caden Concepts
In another case, a retail client needed custom tote bags for a store opening but lead times out of Asia were unworkable. Therefore, Caden Concepts collaborated with a boutique domestic supplier to create a limited-edition run of hand-dyed bags that generated buzz due to their artisanal, exclusive look. Caden says the firm brought in additional staff and utilized its 3PL for the drop shipments to nearly 2,000 stores.
In another instance, a nonprofit planned a large volunteer giveaway with custom T-shirts sourced internationally. When the shipment stalled, Caden Concepts connected with a couple local screen printers (to split the production) to produce organic cotton tees with an updated design that resonated with the cause. “The volunteers loved the eco-friendly upgrade,” Caden adds.
“In each case, we emphasize proactive communication, contingency planning and leveraging a diverse supplier network to ensure flexibility and creative problem-solving. Our goal is always to deliver impactful, on-brand solutions – even when supply chains get complicated. It’s all about being flexible, fast-thinking and solutions-driven, which is where our experience really shines.”
Planning Ahead
Thanks to a recent deal between the United States and China, promo firms may finally gain some semblance of stability.
- President Donald Trump says Chinese goods imported into the U.S. will now be subject to a 55% cumulative tariff, while other sources estimate the overall rate will be closer to 33%.
- Meanwhile, China has committed to a 10% rate on U.S. goods.
Furthermore, after a legal battle over the president’s ability to implement tariffs, a federal circuit court has granted the Trump administration’s request to keep the tariffs in place during the appeals process. The circuit court also fast-tracked the appeal, with oral arguments set for July 31, writing that “these cases present issues of exceptional importance warranting expedited en banc consideration.”
As the legal process plays out, distributors must be more intentional about planning ahead. That starts with educating clients on current lead times, potential delays and the value of early decision-making, according to Williams.
RELATED: Sourcing Locally vs. Global Trade: What’s Promo’s Path Through Tariffs?
“In the past, clients could place last-minute orders and still receive product in time for events, but that margin has tightened significantly,” she says. “We now build in extra buffer time for every step: proofs, production, transit and fulfillment. We’re also steering clients toward products that are either made domestically or warehoused in the U.S. to avoid the uncertainties of ocean freight.”
Williams adds that AB Unlimited Worldwide has also started recommending that clients pre-book seasonal campaigns – even if all the details aren’t finalized – just to get on the production schedule and secure inventory before it disappears.
“It’s more work on the front end, but it protects our clients’ timelines and their brand reputation on the back end,” Williams says.
