Global supply chain issues escalate! Walmart, Target and other companies rent private boats to deliver goods!

According to MarketWatch, as supply chain disruptions and shortages intensify, Walmart and Target are renting private ships to transport goods in order to better improve their competitiveness, occupy the retail market and prepare for the peak shopping season.

Since the outbreak of the epidemic, manufacturing shutdowns have reportedly slowed production, a shortage of shipping containers has caused shipping prices to increase 10 times compared to a year ago, and a labor shortage has limited the number of truck drivers or workers who can deliver items to warehouses.

Janine Stichter, an analyst at financial services firm Jeffries, said that supply chain problems are continuing to worsen, and the key factor for retailers' success in 2021 is whether they can supply products on time or relatively on time. However, leasing ships is only a temporary solution, and retailers' financial expenses will also increase significantly.

Janine Stichter further stated that the cost of leasing a ship is $1 million to $2 million per month, and leasing a container will add a few hundred dollars. The largest retailers use 500 to 1,500 containers per month, and the expenditure is huge. For medium-sized retailers or emerging fashion brands, it is extremely difficult to rent a ship to transport goods.

It is learned that the global supply chain problem has escalated to a new level. In addition to Walmart and Target, Costco has also previously rented three ships with thousands of containers to transport goods from Asia to the United States and Canada. However, in the United States, many ships are currently parked at ports because they cannot unload goods, and major ports are "overcrowded."

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