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Lululemon to increase air freight to avoid port congestion in Asia

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.

With the tariffs on Lululemon described as “moderate”, just six per cent of the activewear company’s finished goods comes from China, with only one per cent subject to tranche three tariffs.

 

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