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  • The Costco Packaging Guys

Costco takes unique action on historic shipping impacts.




And we've leased several thousand containers for use on these ships. Every ship can carry 800 to 1,000 containers at a time, and we'll make approximately 10 deliveries during the course of the next year.

Transportation costs both domestically and internationally are at all time highs. Costco is taking historic action.


As mentioned in the Costco quarterly earnings call on Sept 23 rom Richard Galanti -- Chief Financial Officer:


In terms of transportation costs, they're increasing. We're reading about it every day.


Containers, trucks and drivers all are impacting the timing of deliveries and higher freight costs. Despite all these issues, we continue to work to mitigate cost increases in a variety of different ways and hold down and/or mitigate our price increases passed on to the members. We've also chartered three ocean vessels for the next year to transport containers between Asia and the U.S. and Canada.


And we've leased several thousand containers for use on these ships. Every ship can carry 800 to 1,000 containers at a time, and we'll make approximately 10 deliveries during the course of the next year. Moving to inflation. Again, there have been many -- there have been a variety of inflationary pressures that we and others are seeing, and more of it.


The takeaway for all of us is shipping costs and availability aren't changing anytime soon. The need to design efficient, safe, cost effective packaging is more critical than ever.

We cannot afford to have excessive trailers/containers needed for shipping inefficient packaging or product returned due to damage


Until next time.


Cheers,


TCPG




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