Amid supply chain bottlenecks gripping the United States economy, firms are dealing with shipping costs that have increased by several hundred percentage points.
During an interview with CNBC, Jeremy Andrus — the chief executive of Traeger, a grill company — explained that his firm is seeing diminished profits due to the cost of shipping.
“Bringing a 40-foot container from Asia to the U.S. twelve months ago was about $1,500. Today, you’re spending upwards of $30,000 and we’re certainly averaging close to $10,000,” Andrus said, implying that typical shifting costs have increased by over 550%. “Our inventory is big and heavy. It takes up a lot of container space, and so we are particularly sensitive to transportation costs.”
“We’re sensitive to a near-term shift. The world will right-size itself,