General

Affected by factors such as the new crown pneumonia epidemic, many companies and factories in the United States have insufficient production capacity, and the operation of the supply chain has been blocked. As a result, stores and supermarkets in some areas have been forced to implement "purchase restrictions" measures to cope with the dilemma of commodity shortages.

On the one hand, due to insufficient capacity, a large number of goods are backlogged in warehouses, docks and other storage centers that cannot be transported; on the other hand, stores and supermarkets are facing closures because they have no goods to sell.

According to a report by CNN on the 10th, recently, shopping malls, supermarkets, and grocery stores in many parts of the United States have experienced shortages of a variety of commodities. Many commodities, including food and beverages, clothing, and daily necessities, are out of stock to varying degrees. . Many supermarkets have empty shelves or only a few products for customers to choose from, and some stores say they are “unsure when they can replenish them”. Even some large supermarket chains have begun to resume the "purchase restrictions" measures that were introduced at the beginning of the outbreak in the United States, and began to limit the number of daily necessities such as toilet paper for customers.

Some US companies said that due to factors such as the epidemic, they are facing labor shortages and insufficient factory capacity. To make matters worse, this widespread shortage has had an impact on the entire supply chain. For example, some companies can guarantee the production of their own products, but they cannot buy the boxes and bottles used to package the products, because the companies that manufacture the packaging containers have insufficient capacity.

In addition, there are also problems in the logistics and distribution of goods. On the one hand, due to insufficient capacity, a large number of goods are backlogged in warehouses, docks and other storage centers that cannot be transported; on the other hand, stores and supermarkets are facing closures because they have no goods to sell.

Some American media analysis pointed out that the shortage of goods in the United States has always existed. According to statistics, before the outbreak, 7% to 10% of the merchandise on the shelves of American stores was always "out of stock". The epidemic has amplified this problem and spread it to other areas. As the US epidemic has been difficult to effectively control, the shortage of goods is not expected to be alleviated in the short term, and "empty shelves" will become the norm for Americans this winter.

As the global shipping crisis is raging, North American warehouse supermarket giant Costco has joined the ranks of Home Depot, renting its own container ships to prevent delays and maintain costs.

According to CNBC reports, shipping bottlenecks have caused freight rates to rise, causing US retailers to have trouble selling during the Christmas holiday. Recently, Costco has worked with many retailers to warn about rising freight rates and the consequent supply chain problems. The warehouse retailer already had similar cautious rhetoric in May, with sportswear giant Nike, leaders FedEx and General Mills also discussing similar concerns.

Richard Galanti, Costco's chief financial officer, called freight rates a "permanent inflationary item," and said the combination of rising freight rates and "somewhat permanent" factors have increased the pressure. These factors include not only freight, but also rising labor costs, rising demand for transportation and products, shortages of computer chips, petroleum and chemical products, and rising commodity prices.

Specifically, Galanti pointed out that Costco's overall inflation rate may be between 3.5% and 4.5%. The cost of paper products has risen by 4% to 8%, and shortages of plastic and pet supplies have pushed prices up by 5% to 11%.

In addition, FedEx FedEx announced last week that it will increase the freight rate for domestic services by 5.9% and the freight rate for other services by 7.9%. The company said it is being hit by labor shortages and "costs associated with a challenging operating environment."

UPS, FedEx's main competitor, also acknowledged the obstacles faced by the business. UPS CEO Carol Tome said on a CNBC program a few days ago: "The labor market is tight. In some parts of the United States, we have to make some market price adjustments to meet market demand."