06/24/2021
We have been busy building crates ... sorry for the absence. The pandemic has certainly made a mess in ways we would never have expected. (Obviously, lives directly impacted by Covid caused far greater harm than the business effects of the pandemic, nonetheless, while the health issues look to be improving, we are still in the midst of other effects.)
First, people stopped flying, and there is lots of cargo that rides in the bellies of passenger planes, so there was an immediate shortage of capacity for air freight. There has been a general increase in consumer demand, which more slowly led to a shortage of sea containers and snarled ports world-wide. Meanwhile, several years ago, there was too much trucking capacity in the US, so some businesses shutdown, others curtailed staff. The onset of the pandemic led some older drivers to retire early. Reduced capacity and increasing demand led to increased costs and challenges in trucking.
Meanwhile, in our primary business of building skids and crates, lumber prices went crazy - to the tune of 500% increase in cost for some materials, and at least 200% across the board price increases. The Federal Reserve (who generally seldom deals in lumber), has used lumber pricing as a example and suggests the inflationary pressures are short term and that lumber prices are coming down. This is good news, though have not seen prices drop in our local market, hopefully it is coming!