Amid Port Delays, Wal-Mart Boosts Import Volume

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Amid Port Delays, Wal-Mart Boosts Import Volume

By DAVID GREENBERG

Staff Reporter

With congestion at its worst at the ports of Los Angeles and Long Beach, Wal-Mart Stores Inc., the nation’s biggest importer, is increasing the amount of volume it brings in from Asia.

The Bentonville, Ark.-based retail giant isn’t discussing its plans in much detail. However, shipping industry participants said that Wal-Mart appears to have departed from its usual practice of importing just enough goods to stock its shelves and instead is bringing in enough extra cargo to give its vaunted just-in-time delivery system some breathing room.

“They are hedging their bets on the delays,” said Guy Fox, executive vice president of customs services for Carson-based Stonepath Logistics Inc. “We can assume it’s going to cost them more but they will have their merchandise on hand for fulfillment to their customers. This would be a logical move in light of the present circumstances.”

The company declined to say how much cargo it will bring in during the peak holiday shipping season, which started this month and typically runs through mid-November. Wal-Mart imported more than 470,000, 20-foot equivalent containers last year and the company has projected a 12 percent increase in sales for 2004.

“What we’re doing this year may be slightly different than in past years,” said Wal-Mart spokesman Bill Wertz, who refused to offer any details of the company’s strategy. “We are importing more this year because we are a bigger company than we were last year.”

Wal-Mart officials met with West Coast logistics partners in late spring, just before the backlog of container and other cargo-carrying vessels began. Last month, it called another meeting in Long Beach to strategize on moving the cargo amid the port congestion.

On Sept. 13, the port backup peaked with a record 80 ships twice the normal number anchored at the docks or waiting for a berth. Officials expect 90 or 100 ships per day, and congestion stretching at least 1 & #733; months past the normal end of the season.

Maritime officials could not say whether Wal-Mart’s increased volume is having an impact on port traffic. Labor shortages at the ports and on the railroads have been cited as the largest factors so far in creating the backup.

Other large retailers, such as Home Depot Inc. and Target Corp., use just-in-time delivery systems. But none are as large as Wal-Mart, nor are they squeezing so much of their holiday imports into such a short timeframe, maritime officials said.

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