'Containergeddon': Supply crisis drives Walmart and rivals to hire their own ships

 

         Big U.S. retailers charter vessels amid supply crunch

         Dozens of container ships stuck at U.S. West Coast ports

         Companies reliant on Asia supplies face tough holiday season

         Shipping operators can cash in on spike in container rates

 

By Lisa Baertlein, Jonathan Saul and Siddharth Cavale, Reuters

October 7, 2021

 

LOS ANGELES, Oct 7 (Reuters) - The Flying Buttress once glided across the oceans carrying vital commodities like grain to all corners of the world.

 

Now it bears a different treasure: Paw Patrol Movie Towers, Batmobile Transformers and Baby Alive Lulu Achoo dolls.

 

The dry bulk cargo ship has been drafted into the service of retail giant Walmart (WMT.N), which is chartering its own vessels in an effort to beat the global supply chain disruptions that threaten to torpedo the retail industry's make-or-break holiday season.

 

"Chartering vessels is just one example of investments we've made to move products as quickly as possible," said Joe Metzger, U.S. executive vice president of supply-chain operations at Walmart, which has hired a number of vessels this year...

 

... Other big retail players, such as Target (TGT.N), Home Depot (HD.N), Costco (COST.O) and Dollar Tree (DLTR.O), have said they are chartering ships to deal with the pandemic-driven slowdown of sea networks that handle 90% of the world's trade...

 

ROUTE FOR GREAT PROFIT ...

 

WHY PORT SIZE MATTERS ...

 

PAYING $20,000 PER CONTAINER ... 

 

... Separately, agribusiness giant Cargill [RIC:RIC:CARG.UL] said it is looking into using some of the dry bulk ships it charters to instead hold containers, if only as a temporary solution, to "alleviate bottlenecks"...

 

more, including links  

https://www.reuters.com/business/autos-transportation/containergeddon-supply-crisis-drives-walmart-rivals-hire-their-own-ships-2021-10-07/