The container shipping market is in overdrive as the holiday season approaches. Major retail companies like Costco are spending big money renting entire vessels to ensure Christmas products and materials don't hinder sales with delays at the end of the year. The reason for these expensive rentals is to bypass ocean delays, which are getting seemingly longer. According to this American Shipper article, on-time shipment performance is at a startling 10%. Additionally, the cost of many of Costco's goods has increased significantly as input costs have risen throughout the pandemic. Despite a noticeable rise in Costco's spending, the retailer is making more money than it's losing on these speedy deliveries as products fly off the shelves. 'Tis the season to buy in bulk.
Read more about it here: https://www.freightwaves.com/news/rent-a-ship-costco-hires-vessels-for-urgent-deliveries