Get ready to pay more for goods as container shipping costs skyrocket

Get ready to pay more for goods as container shipping costs skyrocket

According to grill maker Traeger, the company saw an 11.7% year-over-year increase in sales in its third quarter, as it recorded $162 million in revenues. However, its gross profit margin of 33.5% represented a steep decline from 45.3% in Q3 2020.

“Bringing a 40-foot container from Asia to the US 12 months ago was about $1,500. Today, you’re spending upwards of $30,000 and we’re certainly averaging close to $10,000,” Traeger CEO Jeremy Andrus told CNBC on Monday.

“Our inventory is big and heavy. It takes up a lot of container space, and so we are particularly sensitive to transportation costs,” he added.

The chief executive also said he believes the elevated transportation costs will eventually ease, providing a boost for Traeger down the road as it competes in a grilling category that has expanded during the pandemic.

“We’re sensitive to a near-term shift. The world will right-size itself, in terms of these costs, and we will see some significant flow through to the bottom line,” Andrus said, adding: “But right now, we are driving the brand. We are thinking about the engine, the brand health. That’s what lasts long term.”

The lockdown measures intended to stop the spread of coronavirus have led to a surge in demand for goods, inflating the cost of containers. This has resulted in rising prices for all types of consumer goods. Experts say shipping costs will continue rising and the market will not start to settle until the middle of 2022.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Germans have been advised to think twice about having a hot shower if the authorities decide to place an embargo on Russian natural gas amid Moscow’s military operation in Ukraine.“You will have to
подробнее...

India has asked state-run energy companies to evaluate the possibility of acquiring oil major BP’s stake in sanctions-hit Russian firm Rosneft, sources told Reuters on Thursday. BP had earlier
подробнее...

Russia needs a new pension reform that would lower the pension age to 45, businessman Oleg Deripaska, founder of aluminum giant Rusal and, for a time in the late 2000s, Russia’s richest man, told the
подробнее...

The Russian State Duma voted on Thursday to extend Elvira Nabiullina’s term as the governor of the country’s central bank for another five years. On March 18, President Vladimir Putin submitted a
подробнее...

The Russian economy is entering a period of major adjustments to cope with the impact of the sanctions placed on Moscow by the US and its allies, Elvira Nabiullina, the head of the country’s central
подробнее...

Russian Railways (RZD) said on Friday it has agreed with its Chinese partners to gradually increase the number of freight trains through connecting stations.“In April, rail cargo transfer [between
подробнее...

Prospects for the global economy have darkened since the outbreak of conflict in Ukraine, the World Trade Organization (WTO) said in a new report published on Tuesday. It has forecast that
подробнее...

French luxury cosmetics brand L’Occitane has decided to close its stores and online shops in Russia due to Moscow’s ongoing military operation in Ukraine, the company said in a press release on Friday
подробнее...

The 735 billionaires who call the US home have watched their wealth surge 62% over the last two years, reaching the shocking figure of $4.7 trillion, according to a report by Oxfam America released on
подробнее...

Russia will see its income from the oil sector rise sharply this year and reach more than $180 billion, despite production cuts related to international sanctions, suggests a report published by
подробнее...

Russia has continued exporting grain to some of its biggest customers, including Egypt, Turkey, and Iran, Bloomberg reported on Thursday, citing the general director of the Moscow-based Institute for
подробнее...

Indian importers plan to increase purchases of Russian crude oil and coal at discounted prices, media reports have stated.According to The Economic Times, India’s state-owned oil refiners plan to
подробнее...

US natural gas prices reached their highest levels in more than 13 years on Monday, with futures jumping over 3% to trade as high as $7,569 per million British thermal units. Record shipments of
подробнее...

The central bank of Israel said it is diversifying the country’s foreign exchange holdings by adding the Chinese yuan alongside three other currencies, while slashing the share of the dollar and the
подробнее...

Western nations have failed in their attempts to destabilize the Russian economy with sanctions, Russian President Vladimir Putin said at a government meeting on economic issues on Monday.“The
подробнее...

Consumer prices in Germany will see a 7-8% increase in 2022, Karl von Rohr, the vice president of Deutsche Bank, told the Frankfurter Allgemeine newspaper. However, if the government restricts Russian
подробнее...

Russia has increased export quotas on complex mineral fertilizers to support domestic producers, according to a resolution published on the Cabinet of Ministers website on Sunday.“The current export
подробнее...

The Russian central bank has relaxed temporary capital control measures, which were introduced to support the domestic currency and prevent capital outflows amid Ukraine-related Western
подробнее...