Vessel chartering has been a solution for some major retailers this holiday season. Although the supply chain has seen an increase in capacity—congestion, driver shortages, and warehouse staffing are still an issue.
David Rainwater: Hey everybody, David Rainwater and Theresa Neff here with GSC Logistics, Delivering Certainty. Theresa, it’s been a while. Have you been?
Theresa Neff: I’m good, David, how are you?
David Rainwater: Great. You know, I don’t know about you, but I’ve been super busy looking desperately for a vessel, a boat.
Theresa Neff: What? Why are you looking for a boat, David?
David Rainwater: Well, you know, it seems to be the thing. I mean, this retailer is chartering a boat and this retailer is chartering a boat. You know, it just seems to be the thing to do. Everybody is, you know, what is it, bring your own vessel? Is that what it’s going to take right now to be able to get it delivered to the west coast?
Theresa Neff: That is the story. We’re hearing it for sure. I mean, on the news, any time you turn on the news, they’re talking about this holiday season prepared to buy your gifts now or have them not be available. I mean, for me, I have purchased about 90% of my holiday shopping gifts because you don’t know if there’s going to be stuff that’s not going to be available. I know some major retailers are limiting the amount of toilet paper people can buy not because the demand is so heavy like 2020, but because the supply is just not available. So, over the last week or so, the rates have softened coming into the west coast and carriers are adding more capacity- what you think would be a good thing, but the congestion at the port remains. They can only offload as many vessels as they can warehouse capabilities, and staffing is still tight. Driver shortages still exist. And even on the rail ramps, there’s congestion challenges.
David Rainwater: So, kind of the more things change, the more they remain the same.
Theresa Neff: That’s absolutely the story here.
David Rainwater: You know, it’s crazy Theresa, it’s gone from being inside industry chatter to living the reality out on the retail store shelves. I mean, I think the public is really starting to see the impact of these challenges that we’re experiencing. Of course, at GSC Logistics we are tasked with mitigating those challenges wherever we can. So anyway, Theresa, thanks again. Looking forward to the next update from you.
Theresa Neff: Thanks, David. It’s always great to see you.