Update on supply chain issues
and HFA’s push for federal action
Content about HFA member-retailers contributed by HFA.
The Home Furnishings Association continues to engage policymakers regarding severe supply chain disruptions currently impacting furniture retailers. President Biden recently issued an Executive Order directing the Departments of Commerce, Agriculture, and Transportation to examine supply chain delays and remedies to help American businesses and consumers. HFA is encouraging governmental supply chain action to address delays and added fees being charged to home furnishings retailers that ultimately increase costs for consumers.
Ocean Freight Action
Recently, the Biden Administration engaged HFA and other stakeholders to discuss unfair practices being used by ocean carriers related to demurrage and detention fees that accumulated as ports backed up. Building on an earlier meeting HFA had with the Federal Maritime Commission (FMC), the Executive Order will encourage the FMC to take aggressive enforcement measures against shippers that charge excessive fees. Hopefully this action will provide critical relief to furniture retailers facing container fee increases of 500%.
HFA has elevated the
retail backlog issue to the Biden Administration and congressional leaders to explore remedies.
In addition to ocean freight issues, the Executive Order will direct the Surface Transportation Board to examine the consolidation of the railroad industry and the impact that has on domestic competition. HFA members report rail and trucking delays that also contribute to the significant backups at ports, slowing down the movement of goods from ships to modal transportation within the U.S.
Furniture retailers have remained a key indicator of the economic recovery, but these supply chain issues threaten to negatively impact that trend. HFA appreciates the continued focus of the Biden Administration, congressional members and staff on policies and initiatives to combat these problems. We look forward to working with all key stakeholders until the situation is resolved.
HFA CEO Mark Schumacher recently drafted a letter to President Biden to stress the urgent need for supply chain relief and the need to help develop solutions. To read the letter and keep up with HFA’s legislative efforts, visit go.myhfa.org/advocacy.
For more information on what HFA is doing to empower furniture retailers for continued success, join the community at https://myhfa.org/.
A feature about Home Furnishings Association's retail members, legislation affecting the furniture industry and other retail news from HFA.