Supply chain situation is grim! Walmart, Target and other companies rent private boats to deliver goods!

Supply chain situation is grim! Walmart, Target and other companies rent private boats to deliver goods!

During the global pandemic , manufacturing shutdowns slowed production , a shortage of containers pushed up shipping prices to 10 times what they were a year ago, and a labor shortage limited the efficiency and quantity of truck drivers and workers delivering items to warehouses .

 

Analysts from financial services firm Jeffries said supply chain problems are continuing to worsen , and for the rest of the year, retailers ' success will depend largely on whether they can supply products on time or relatively on time .

 

The editor learned from foreign media that large retailers like Target and Walmart have begun to rent private boats in order to solve supply chain problems in order to put products on the shelves before the holiday shopping season.

 

Chartering a vessel provides more flexibility and allows you to avoid crowded ports

 

According to Market   The company mentioned in a blog post on its website last month that they charter container ships to regularly transport Target merchandise from overseas ports to the U.S. As co-managers of the ships, they can avoid delays caused by extra calls and avoid particularly congested ports.

 

The chief financial officers of Walmart and Costco also talked about chartering ships in their earnings reports . Costco has chartered three ships with thousands of containers to ship items from Asia to the United States and Canada.

 

While these big retailers are using their financial resources to avoid delays during the holiday season , the cost of doing so is relatively high .

 

Michael Zimmerman of global consulting firm Kearney mentioned that it is impossible for medium-sized retailers or emerging fashion brands to rent ships themselves , and renting ships is only a temporary solution.

 

Zimmerman said the cost of leasing a ship is $1 million to $2 million per month , plus operating costs, while leasing containers adds several hundred dollars more , with large retailers using between 500 and 1,500 containers per month .

 

Zimmerman added that the world has never faced supply chain problems like the ones it has now , not even during the Great Depression .

logistics

Independent website

Supply Chain

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