Nike is running out of shoes as COVID-19 continues to worsen in Southeast Asia, where nearly half of the company's US imports are made, according to a new report from S&P Global Market Intelligence.

Vietnam’s top suppliers, Chang Shin Vietnam Co. and Pou Chen Corp., have recently halted production after the growing COVID outbreak in the region. In 2020, Vietnam accounted for half of Nike's total brand footwear production. Nike CFO Matthew Friend expects supply chain delays and higher logistics costs to persist until May of 2022.

Panjiva’s data says that Vietnam has accounted for 49% of all U.S. seaborne imports linked to Nike. Nike’s imports out of Vietnam are dominated by footwear, accounting for 82% of shipments in the past year.

The halt in production is already hitting Nike’s supply chain, as well as other retailers, and shortages are expected to worsen as Americans move closer to back-to-school season. Other obstacles include a shortage of cargo containers and a lack of room at ports.

Brooks Running Company CEO Jim Weber says that his company is running on an 80-day shipping cycle when it used to take 40 days. “There is no question the supply chain is strung out in our industry,” he said.

Nike shares went down around 1.3% Monday, but the stock is up 11.5% year to date. Nike has a market cap of about $250 billion.