Costco running out of cheese, other goods due to container, port woes

Costco is running out of imported cheeses as a global shortage of shipping containers and bottlenecks at vital West Coast ports led to delays for suppliers shipping their goods.

The combination has increased costs along the supply chain.

Costco chief financial officer Richard Galanti noted that container shortages and port delays have delayed shipments on certain freight.

Galanti added that the problem not only limited to cheese, but also seafood, olive oils, sporting goods, furniture, and lawn and garden equipment.

While Galanti expects the pressures to ease in the coming months, he says it's now impacting everyone.

Supply chain pressures have been a constant for retailers throughout the pandemic. But a chorus of chains,

Other companies such as Crocs, Urban Outfitters, Foot Locker, and Dollar Tree said that the container shortage and West Coast port backlogs are their latest challenges in securing merchandise.

Crocs CEO Andrew Rees said that they're having difficulty importing products from Asia, getting it through Long Beach and other ports, and shipping it to customers. He believes that it would take a while for the situation to smooth over time.

Urban Outfitters COO Francis Conforti sees some slight improvement and is hopeful that it will continue at a moderate pace.

Demand for food, appliances, furniture, and home goods has increased as the pandemic forced consumers to spend more time at home.

Shipping cost to the US by sea jumped to $6.36 billion in January from $2.46 billion a year earlier. However, US imports shipped via sea increased 20 percent on-year in January, with household appliances being the biggest growth driver.

Consequently, more companies are shipping goods via air.