Walmart, one of the world’s largest shippers, has become the latest US retail giant to take shipping matters into its own hands. As supply chain disruptions continue to threaten sales, Walmart is chartering ships to ensure it has enough capacity to meet peak season demand, they said.
The major supermarket chain is following in the footsteps of Home Depot and deciding to charter its own ships across the Pacific to ship some of its cargo instead of paying sky-high freight rates to global liners.
“We have chartered vessels that have secured capacity for the third and fourth quarters and are pleased with the inventory position, especially compared to last year. Inventory increased 20% across segments and is well positioned to handle expected “cost pressures” in the second half, Walmart U.S. CEO John Furner said on the company’s earnings call.
According to Executive Vice President and Chief Financial Officer Brett Biggs during the company’s recent earnings call, Wal-Mart has benefited from the U.S. government’s economic stimulus plan, and its food products Sales increased $2.4 billion year over year. Now looking forward to peak demand during the strong “back to school” season.
However, Biggs added that current supply chain issues are a major concern. “We need to mitigate the impact of supply chain disruptions, which is the main reason for chartering ships specifically for Walmart to transport merchandise. ” he explained.
Walmart is experiencing significant sales growth, especially in the United States, where CFO Brett Biggs said full-year growth will be 11%-12%.
He said growing e-commerce demand means Wal-Mart is developing new logistics centers to meet this demand.
Walmart has completed two voyages, both arriving in the United States this month, said Steve Ferreira, CEO of New York-based consulting firm Ocean Audit.
Shippers decide to take control of their The supply chain isn’t limited to chartering ships. Earlier this week, media reported a Canadian tire manufacturer’s decision to invest in an inland container terminal.
Gene Seroka, executive director of the Port of Los Angeles, the largest export port in the United States, recently said when introducing operations that the challenges facing the entire supply chain are equivalent to “squeezing traffic from 10 highways into 5 lanes. on”.
Seroka advises consumers to make Christmas shopping plans early this year, otherwise they may have something at home on December 25 Some very disappointed members.
The intense pressure many U.S. ports are feeling on intermodal routes is becoming a daily Headlines from mainstream U.S. media.
Earlier this summer, the White House announced the creation of a Supply Chain Disruption Task Force. The The task force, led by the secretaries of Commerce, Transportation and Agriculture, aims to bring together stakeholders “large and small, public and private, to work together to diagnose issues and propose solutions to help alleviate bottlenecks and supply constraints. ”
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