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Costco, Nike and FedEx are warning there’s more inflation

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Costco, Nike and FedEx are warning there’s more inflation Empty Costco, Nike and FedEx are warning there’s more inflation

Post by 8DonCo Fri Sep 24, 2021 4:22 pm

Costco, Nike and FedEx are warning there’s more inflation set to hit consumers as holidays approach



  • A slew of factors including rising shipping cost and supply chain bottlenecks are persisting and should last through the upcoming holiday season.


  • One issue is that the cost to ship containers overseas has soared in recent months.


  • Many companies have indicated that consumers at least for now are willing to take on higher prices.


  • Rising inflation expectations could cause the Federal Reserve to change policy course.


  • Shipping bottlenecks that have led to rising freight costs are cooking up a holiday headache for U.S. retailers.
    Costco this week joined the long list of retailers sounding the alarm about escalating shipping prices and the accompanying supply chain issues. The warehouse retailer, which had a similar cautionary tone in May, was joined by athletic wear giant Nike and economic bellwethers FedEx and General Mills in warning of similar concerns.



    The cost to ship containers overseas has soared in recent months. Getting a 40-foot container from Shanghai to New York cost about $2,000 a year and a half ago, just before the Covid pandemic. Now, it runs some $16,000, according to Bank of America.
    In a conference call Thursday with analysts, Costco Chief Financial Officer Richard Galanti called freight costs “permanent inflationary items” and said those increases are combining with things that are “somewhat permanent” to drive up pressure. They include not only freight but also higher labor costs, rising demand for transportation and products, plus shortages in computer chips, oils and chemicals and higher commodity prices.






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8DonCo

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Costco, Nike and FedEx are warning there’s more inflation Empty Re: Costco, Nike and FedEx are warning there’s more inflation

Post by ga10 Fri Sep 24, 2021 4:24 pm

I am trying to undertsand why freight prices went up so much due to COVID?
ga10

ga10


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