Walmart starts renting ships to cope with supply chain crisis during peak season!

After Home Depot started the ship chartering model on June 15 this year , Walmart, the world's largest shipper and consignee, also began to charter ships to ensure the normal operation of the supply chain in the second half of the year.

This year, there have been frequent shipping problems. Port congestion, container shortages and continued increases in shipping costs have seriously affected cross-border companies. Delivery delays, supply chain disruptions, rising prices and other issues will also disrupt market order. In order to ensure the normal operation of the company, these companies have to charter their own cargo ships to ensure shipping capacity during the peak season.

The upcoming school season, as well as the subsequent shopping seasons such as Black Friday and Christmas will further increase the pressure on sea transportation.

Walmart Executive Vice President and Chief Financial Officer Brett Biggs said current supply chain issues are a major concern and the main reason for renting ships specifically for Walmart to transport goods .

Walmart 's U.S. CEO said on the company's earnings call that Walmart has secured capacity for the third and fourth quarters with chartered vessels and is pleased with its inventory position, especially with inventory up 20% across segments compared to last year , and is well positioned to cope with expected "cost pressures" in the second half of the year .

Walmart 's ship leasing also provides its suppliers with more order delivery time and helps Walmart better plan its inventory.

Walmart benefited from the U.S. government's economic stimulus plan, with food sales up $2.4 billion year-over-year, and is now looking forward to strong "back to school" season peak demand, according to Brett Biggs, executive vice president and chief financial officer, on the company's earnings call on Tuesday.

As shipping pressure continues to increase and the middle of the supply chain continues to threaten sales, Home Depot and Walmart, two large companies, have begun to charter their own cargo ships to cope with the problematic shipping market. I wonder if more companies will join the path of chartering cargo ships in the future?

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