Looking to pick up cheese or olive oil the next time you’re at Costco? It might be harder than you think.
Supply chain problems are causing shortages of the products, along with seafood and several other items at certain locations of the megastore. More specifically, the problem is a shortage of shipping containers.
“From a supply chain perspective, overseas freight has continued to be an issue in regards to container shortage and port delays,” said CFO Richard Galanti on an earnings call last week. “This has caused timing delays on certain categories, including furniture, sporting goods, lawn and garden, and even some food and sundries items like seafood, imported cheeses, and oils. We expect these pressures to ease in the coming months, but it’s impacting everyone, of course.”
Beyond shipping issues, other supply problems are affecting some products. Galanti noted that aluminum can shortages are causing issues with canned beverages. And bacon has seen price spikes, though that appears to be tied more to demand than shortages.
The shipping supply problem seems localized to West Coast ports, including Los Angeles and Seattle, but it is having ripple effects throughout the country. The delays are resulting in some higher costs for retailers, who are trying to avoid passing those along to customers.
Costco isn’t alone. Dollar Tree, Foot Locker, and Urban Outfitters have all noted that it’s getting harder to import products from overseas.
Complicating things is pent-up consumer demand, which is fueling spending as people become more optimistic about a return to normal with the release of COVID-19 vaccines and a long winter coming to an end. So when limited goods—whether cheese or patio furniture—do arrive, they’re often snatched up quickly.
There is hope that the problem is about to ease, though. President Joe Biden ordered a broad review of the supply chain for critical materials last month. While that order focused on specific items like semiconductors and pharmaceuticals, Biden also called for a separate one-year review of supply chains in broader sectors, including food production.
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