Shipping Prices Up 500%, 1000% For Some Firms
Amid supply chain bottlenecks gripping the United States economy, firms are dealing with shipping costs that have increased by several hundred percentage points.
During an interview with CNBC, Jeremy Andrus — the chief executive of Traeger, a grill company — explained that his firm is seeing diminished profits due to the cost of shipping.
“Bringing a 40-foot container from Asia to the U.S. twelve months ago was about $1,500. Today, you’re spending upwards of $30,000 and we’re certainly averaging close to $10,000,” Andrus said, implying that typical shifting costs have increased by over 550%. “Our inventory is big and heavy. It takes up a lot of container space, and so we are particularly sensitive to transportation costs.”
“We’re sensitive to a near-term shift. The world will right-size itself, in terms of these costs, and we will see some significant flow through to the bottom line,” Andrus said. “But right now, we are driving the brand. We are thinking about the engine, the brand health.” – READ MORE