Groomer's Choice Blog

A Hairy Situation: How Cargo Ships Are Affecting Grooming

Written by Katie Parr, Marketing Manager | Jul 26, 2021 1:30:00 PM

Around the world, freight companies aren’t just facing unique growth challenges. They’re facing the perfect storm. The global pandemic, the March 2021 blockage of the Suez Canal and delays in processing cargo ships at ports have resulted in an increase in prices, both with product and in shipping costs. Not only this, but spikes in demand for goods has also taken a toll on logistics companies.

But it isn't just the retail sector or the home improvement industry reeling in the waves of the world trade challenge: Groomers are also experiencing the effects.

The Facts

With 90% of world trade moving on water1, it’s easy to see how one hold up can cause a chain reaction across all ports. Some retailers, such as Home Depot, have taken drastic steps to reduce their costs by reserving their own cargo ship to haul freight2.

According to Dan Dressen, CEO of Groomer’s Choice and Senproco, Inc, the backup of cargo is only one part of the equation. Dressen says Groomer's Choice is facing price hikes of close to 600% in container ocean freight costs, 35% increase in stainless steel, and a 36% raise in fuel rates.

“It's important to remember that we’re not the only ones dealing with this,” said Dressen. “We’re facing a volatile global market.”

1 Brad Howard, “Here’s what’s behind the container ship traffic jam causing delays around the world,” CNBC News, July 2, 2021, https://www.cnbc.com/video/2021/07/02/whats-causing-the-container-ship-traffic-jam-clogging-up-global-trade.html

2 Melissa Repo, “How bad are global shipping snafus? Home Depot contracted its own container ship as a safeguard.” CNBC News, June 13, 2021, https://www.cnbc.com/2021/06/13/home-depot-contracted-its-own-container-ship-to-avoid-shipping-delays.html.



How does this affect Groomer’s Choice?

Some of our goods, primarily equipment like tubs and tables, are shipped on cargo vessels and checked in at port. Many of these ports have experienced a backlog of containers, taking weeks or longer to process. We strive to always maintain adequate supply to serve our customers but due to recent logistics challenges, we too have seen the ripple effects of this trade congestion.

But it’s not just Groomer’s Choice. Many other grooming supply companies are facing the same challenges and are not able to keep inventory in stock at all, causing a bottleneck of demand.

 

How does this impact groomers?

With all of this in mind, prices will inevitably be passed to the consumer, a trend that is already being seen from apparel to electronics. For groomers, this will primarily happen for items like equipment and tools. In fact, most of the Dura Dog Grooming Equipment line is seeing a major price increase and will surely be followed by other manufacturers’ goods in days and weeks to come.

Additionally, some perks for free shipping on LTL freight will ultimately be placed on hold until the world trade situation returns to a more reliable state.



Our commitment to you

While the world trade situation is not an easy one to swallow—and most definitely not a welcome situation for a company’s pocketbook—Dressen says that Groomer’s Choice remains committed to our grooming family.

“A big message I’d want to get out there is that we’re going to do the best we can and get your products in at the best prices we possibly can,” Dressen stressed. “But due to market volatility, prices are going to be subject to change.”

Our priority continues to be to our customers as well as the long-term success of our company, so we can continue to provide for our grooming family for years to come.

 

Contact Info 

We’re always here for you. For questions or concerns, please call 888-364-6242 or email wecare@groomerschoice.com