- 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 a tough holiday season
- shipping operators can cash in on a spike in container rates
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 says an article on Reuters.
Chartering vessels
“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.
Aim
The aim is to bypass log-jammed ports and secure scarce ship space at a time when COVID-19, as well as U.S.-China trade ructions, equipment shortages, and extreme weather, have exposed the fragility of the globe-spanning supply lines we use for everything from food and fashion to drinks and diapers.
Supply crisis
More than 60 container ships carrying clothing, furniture, and electronics worth billions of dollars are stuck outside Los Angeles and Long Beach terminals, waiting to unload, according to the Marine Exchange of Southern California.
Why port size matters
Great Profit moored at a terminal that handles everything from sugar to windmill blades but can only accommodate a maximum of 500 containers from one to two ships per month between now and the end of the year, said Greg Borossay, the port’s maritime business development principal.
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Source: Reuters
