shine trader limited reports:
Costco, the largest chain member store in the United States, announced that it would re implement purchase restrictions, including household goods such as toilet paper, cleaning products and bottled water.
This time, it was not the panic buying rush that COVID-19 had caused, but the supply chain crisis and the soaring logistics cost.
The same crisis occurred in Britain. People in the UK Truck Industry estimate that there is a shortage of 90000 truck drivers, leading to a supply bottleneck in the UK food and energy industry.
Supermarket toilet paper is limited
After Americans snapped up toilet paper because of the epidemic in March 2020, on September 23 this year, the market opener announced that it would impose restrictions on the purchase of household goods such as toilet paper, cleaning products and bottled water in the United States.
Richard Galanti, the company’s chief financial officer, called the logistics cost as a “long-term inflation factor” in the earnings conference call. In addition, under the combined action of rising labor costs, increased product demand, chip shortage and higher commodity prices, the inflationary pressure was further exacerbated.
“We can’t bear all the pressure, and part of the pressure is bound to be passed on to consumers.” he predicted that the overall price rise of products sold by market starters will be 3.5% ~ 4.5%. Among them, the price of paper products for daily necessities increased by 4% ~ 8%, and the price of pet products increased by 5% ~ 11%.
Analysts at investment bank stiefu expect that market starters may raise the annual membership fee next year, an increase of about 8%.
This is not just a problem for the opening customers. FedEx announced that in view of the rising costs and challenging operating environment, it will increase the domestic waybill price in the United States by an average of 5.9% from January 3, 2022.
How serious is the current supply chain problem in the United States?
According to foreign media sources quoted by overseas network on the 25th, major ports in the United States are seriously congested due to labor shortage. The latest satellite images show that more than 60 container ships are trapped outside the ports of Los Angeles and long beach.
Los Angeles port and Long Beach port, located in Southern California, are gateway ports connecting Asian and American shipping routes. Last year, the ports of Los Angeles and long beach handled 8.8 million imported containers, accounting for 40% of the total imported containers of the United States.
According to the Southern California Maritime exchange, which tracks ship traffic, these cargo ships include 42 container ships near the berthing area and 20 container ships in the drift area. According to port officials, the port congestion is due to the purchase boom caused by the epidemic and the shortage of port labor.
According to the latest data of the “Drury world container index” on the 23rd, the freight for transporting a 40 foot standard container from Shanghai to Los Angeles this week was US $10377, about 67000 yuan, an increase of 329% over the same period last year. Insiders pointed out that the recent surge in “spot freight” does not reflect the overall picture of the global shipping industry.
The “long-term contract freight”, which accounts for a larger proportion of orders in the shipping industry, has little fluctuation and has little impact on the downstream of the supply chain. Maersk’s latest quarterly report shows that the average freight rate of each 40 foot container on its east-west route in the second quarter of this year was US $3148, a year-on-year increase of 67.5%, and the freight level and increase were significantly lower than the spot freight.
However, the surge in spot freight rates will still cause price pressure. With the autumn and winter shopping season approaching, a large number of businesses in the United States began to place orders and prepare goods in advance, further putting pressure on the freight routes from Asia to the United States. Due to rising freight rates, some U.S. retailers are considering raising prices, and the cost of holiday for U.S. consumers will increase at the end of this year.
The latest report of the global research department of Bank of America also shows that the tight supply chain in the United States may enter the worst stage at the end of this year, or run out of commodity inventory. From rising labor and freight costs to port delays, and the shortage of containers, trucks and various raw materials, the U.S. supply chain is facing multiple tests. Before the end of the year holiday, retailers’ commodity shelves are likely to be “empty”.
British supermarket shelves were robbed, and there was a gap of 90000 truck drivers
Similar supply chain problems have also occurred in the UK.
According to chinanews.com, citing foreign media reports on the 24th, due to the impact of rising natural gas prices and labor shortage, food supply in the UK is tight, and some supermarket beverage shelves are even sold out. British officials called on consumers on the 23rd that there is no need to panic shopping.
Reprint indicated source：Shine Trader Limited Live information