The COVID-19 pandemic and its “ripple effects” on different industries, especially automotive, "is yet not over," said Volvo Group CEO Martin Lundstedt on a Q4 earnings call Friday. Supply chain visibility and predictability continue "to be low,” he said. Demand will continue to outpace supply in the coming quarters, he said: “Since the summer, we have taken an even more conscious choice to run our productions on high levels and with extra flexibility.” The strategy is “not optimal in the short term when it comes to efficiency,” but it made Volvo more nimble “in a bumpy second half,” and deliveries and market share increased, he said.

The FTC extended by a month the deadline for comments in its November inquiry into how supply-chain disruptions are affecting competition in consumer goods markets, said the agency Friday. Comments are now due Feb. 28 in docket FTC-2021-0068.

The “thinking” at Flex is “in line with” speculation from its suppliers and customers that supply chain bottlenecks will start to “abate” by late 2022 into 2023, said CEO Revathi Advaithi on an earnings call for fiscal Q3 ended Dec. 31. Flex hasn’t seen the supply-chain crisis “abate in any significant way,” she said. “We feel like those supply challenges are still there and consistent.” Any Flex factory disruption from COVID-19's omicron variant “wasn't significant at all,” said Advaithi. “We have 85% of our 165,000 employees fully vaxxed and around 93% of them with at least one dose.” The high rate of vaccinations “has really helped us take this a long way, and because of that, we have really been able to hold our performance through these kind of COVID ups and downs that you have seen recently.”

Imports through the major U.S. retail ports are expected to return to normal growth rates in 2022, but volumes will remain high after a year of “unprecedented increases,” reported the National Retail Federation Friday. U.S. ports handled 2.1 million 20-foot-long cargo containers, 4.5% fewer than in October, but up 0.5% year over year, said the association. Supply chain challenges continue, even with the holiday selling season in rearview mirrors, said Jonathan Gold, NRF vice president-supply chain and customs policy. “The huge increases in imports we’ve seen have leveled out, but volume is still at high levels. We hope the system will find a way to catch up, but there is much that remains to be done to clear out port backlogs and increase capacity throughout the supply chain.” NRF said COVID-19's omicron variant will be the “wild card” that could drive more imports “if consumers stay home and spend their money on retail goods rather than going out,” said Gold.

The Ports of Los Angeles and Long Beach again postponed the threat of a new surcharge meant to incentivize moving dwelling containers, they announced Monday, the day it was take effect. The ports originally planned to begin imposing the $100 a day fee Nov. 15 for each sitting container but have postponed it several times. The latest extension delays the effective date until Jan. 3. Just the threat of the surcharge sparked a 50% reduction in the number of "aging containers" sitting at the Port of Los Angeles, said Executive Director Gene Seroka this month (see 2112090038).

The Ports of Los Angeles and Long Beach again postponed a new surcharge meant to incentivize the movement of lingering containers into the supply chain, the two ports announced Monday. The ports originally threatened in mid-November to begin imposing the $100 a day penalty fee for each container left lingering at dockside but have postponed it several times as the threats successfully reduced the volume of aging containers (see 2112090038). The latest extension delays the effective date to Monday.

“Strict enforcement” of accessibility deadlines for user interfaces on some digital devices wouldn’t be “the most constructive approach” due to supply chain woes, said CTA and the Information Technology Industry Council in a call with aides to FCC Chairwoman Jessica Rosenworcel Thursday, per a filing in docket 21-140. Disruptions created by the COVID-19 pandemic, including to semiconductor availability, could make it hard for some entities to meet a Dec. 20 accessibility deadline for “limited capability digital apparatus,” said the filing: “CTA members facing these constraints are working diligently to come into compliance as soon as possible given circumstances largely outside their control.” Earlier this month, the American Council of the Blind said the requirements have been pending for eight years and should take effect “without delay.”

Costco faced “similar issues” in its supply chain for fiscal Q1 ended Nov. 21 as in its previous quarter, said Chief Financial Officer Richard Galanti on an investor call Thursday. “We feel we've dealt pretty well with the supply chain challenges in terms of delayed container arrivals on the Pacific Coast," he said. "About 79% of our import containers are late by an average of 51 days.” Virtually all Costco departments are affected, he said. Despite all the supply chain challenges, he said, "our buyers have done a very good job of keeping the warehouses full.” Year-over-year inflationary trends are averaging in the “5% range,” but TVs are “going down in price, maybe a little less” this year, because of fewer promotions amid the product and component shortages, said Galanti. Revenue for the quarter in Costco’s largest merchandise department, including TVs and other consumer tech goods, was up by “high-single digits,” despite the tough comparison with “a very strong sales increase a year earlier,” said Galanti.

Western Digital’s fiscal Q1 ended Oct. 1 “was probably the most difficult quarter since the pandemic started” for any company sourcing goods from Southeast Asia because of the COVID-19 factory curtailments there this summer, CEO David Goeckeler told a Wells Fargo investor conference virtually Tuesday. “The delta variant was very substantial. There were times when we had thousands of our employees in quarantine.” As the quarter progressed, and “where we stand today,” WD is in a “much, much better situation” than three months ago, he said. But procuring components for WD products remains “a constant challenge,” said the CEO. Suppliers are quoting “50-week lead times,” he said. “We’re constantly reshuffling the portfolio to make sure that we can get the controllers, all the pieces we need, to build as much as possible. So that’s an ongoing process.” The crisis has “gotten more severe, where we’re seeing some of the biggest customers now in technology have the same challenges,” he said.

President Joe Biden called himself an “optimist,” when asked Wednesday at a White House briefing if he worries that COVID-19's new omicron variant will exacerbate the supply chain crisis. “What we have seen so far” about omicron “does not guarantee” a negative “outcome,” he said. His administration will know in the next several weeks “how dangerous it is, and what damage it does,” he said. “The jury is still out" about omicron causing further setbacks to the supply chain, said Biden. "I think it’s a little early to make that judgment. But am I concerned? Of course I am until we get the final answers.”