Truck shipping

Supply chain issues leading to shipping delays, massive cost increase before the holidays

(WXYZ) – You may not be hearing holiday music in stores yet, but you may have heard about holiday shopping earlier than usual due to lingering supply chain issues of the pandemic.

Related: Artificial Christmas Trees Could See Double Digit Price Rise This Year Due To Supply Chain Issue

Rick Vespa, co-owner of English Gardens, which sells high-end Christmas trees and holiday decorations, said his stores typically start installing seasonal displays in August.

“This year it was delayed due to the delay in getting the merchandise,” he said.

According to Vespa, around 50-60% of their inventory of durable goods is still on the way.

He also said he is already stocking plant containers for 2022, as he started ordering much earlier than normal once he saw the supply chain issues.

The supply chain is the path from the factory to a container, onto a truck or train, to a port, loaded onto a ship, shipped to another port, unloaded onto a truck or train, and transported to a distribution center before going to the store.

Vespa said there have been delays and shortages at every stop.

Walmart is another company trying to deal with supply constraints.

CEO Brett Biggs confirmed during a company earnings call in August that the company “is adding extra time to orders and chartering ships specifically for Walmart products.”

Target announced earlier this month that it has also chartered its own container ship.

The anticipated shortages have been known for months. In July, we spoke with the owners of the Detroit subway toy stores.

“We find that a lot of toys shipped from overseas affect us the most,” said Julie Everitt of Whistlestop Hobby & Toy in July.

Everitt told 7 Action News this week that prices have increased by 10% on some products, some suppliers are now charging for fuel, and a number of companies are also giving them back-out lists. now.
Thus, a shortage of toys is possible.

Regarding land and air transport, UPS said it continues to increase capacity and has opened new facilities around the world. UPS also added six more 747-8 cargo planes, bringing its total fleet of this large aircraft to 28.

You can expect the prices to go up because the shipping costs have gone up so much. Vespa said last year that English Gardens could order a 40-foot shipping container from China for $ 7,000. Now he said the cost per container ranges from $ 13,000 to $ 23,000.

The Drewry World Container Index report from September 16, 2021 showed that the average cost of shipping a 40ft container increased 2.9% to a price of nearly $ 10,375 per container. This is 323% more than a year ago and the 22nd consecutive week of increase.

So plan ahead with a budget and shop early … so you don’t waste your money.

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