American big-box retailer Costco Wholesale Corporation said that it experiencing difficulty in stocking up on imported cheese and other items due to nationwide shipping issues.
The company said that its stores across the nation are quickly running out of imported cheese due to a shortage of available shipping containers. Costo said that it is facing serious delays from its suppliers as most of the major ports in the country are backed up.
Costco's executive vice president and chief financial officer, Richard Galanti, said that ports in Los Angeles, Seattle, Oakland, and Long Beach are all choked. Galanti said that shipments of wheels of imported cheese among other imported foods are being impacted.
"From a supply chain perspective, the overseas freight has continued to be an issue in regards to container shortage and port delays," Galanti said during the company's latest earnings call.
Apart from cheese, the company admitted that it is also facing difficulties in stocking up on imported items such as oils and seafood. Galanti said that it is also having difficulty acquiring imported bacon.
Galanti said that the shipping container shortage has been exacerbated by an unprecedented surge in global demand due to the pandemic. He said that retailers and suppliers are experiencing challenges in meeting the sudden uptick in demand for food, beverage, and other products.
"For whatever reason, there is a lot of demand there. So there is a little bit of challenge. We expect these pressures to ease in the coming months, but it's impacting everyone, of course," Galanti said.
Galanti told analysts that other items such as sporting goods and furniture are now also experiencing supply chain issues. Items such as sanitizing sprays, paper goods, and surface cleaners are also being affected. Galanti also noted during the earnings call that canned products are also in short supply due to the global aluminum shortage.
Other retailers such as Urban Outfitters, Foot Locker, Dollar Tree, and Crocs have also cited the recent container shortage is becoming a major problem. The companies said that they are all experiencing delays in receiving imported merchandise due to the port backlogs.
