Magical Trade
Saturday, June 10, 2023
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Magical Trade
No Result
View All Result
Home Trade News

Get ready for a Christmas tree shortage, as supply chain issues and climate change team up

by
November 16, 2021
in Trade News
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Investors are shifting into high-yield ETFs with a potential Fed pause on the horizon

$5.2 billion in cargo stuck off West Coast ports in truck and container bottleneck

Richmond Township, Pemployee at Beck Tree Farms, carries a wrapped tree.

MediaNews Group | Reading Eagle | Getty Images

Want to buy a Christmas tree this year? You might have better luck asking Santa to bring you one.

Christmas tree vendors say they will have fewer trees available for sale this holiday season due to a double whammy of supply chain troubles and climate change.

The shortfall in supply compared to expected demand will affect the markets for both natural and artificial trees, according to sellers.

“The demand this year is going to be extremely strong and so I think from a consumer perspective people definitely shouldn’t wait,” explained Chris Butler, CEO of National Tree Company, a top importer and wholesaler of artificial Christmas trees and holiday decorations.

“Consumers should buy now because by the time we get to Thanksgiving, which is a peak week for us, I think there’s going to be a lot of empty shelves. We’re seeing pretty strong growth right now already versus last year and so, I do think that we’re in for a big, big season this year,” he added.

Butler said a steady increase in consumer spending on home goods throughout the pandemic, overall fatigue from two years of Covid-19, as well as larger gatherings this winter due to vaccinations were indicators of higher demand this season.

“If you see something you like, buy it,” advised Jami Warner, the executive director of the American Christmas Tree Association. Warner explained that ongoing supply chain disruptions have particularly affected artificial trees, which are mostly imported from Asia and taking longer than usual to get to the U.S.

“The quantities this year will be fewer than usual and of course the consumer will have to take the brunt of higher prices. They won’t be hugely higher but they will be higher,” she added.

A shopper pushes a cart past a display of artificial Christmas trees at a Home Depot Inc. store in Newark, New Jersey, U.S., on Saturday, Dec. 10, 2011.

Emile Wamsteker | Bloomberg | Getty Images

The world’s supply chain – a connective tissue for commerce – is under pressure from surging consumer demand, labor shortages and overseas manufacturing delays. Supply chain disruptions, which were further exacerbated by the coronavirus pandemic, have led to higher freight costs, delivery times and inflation.

“The goal of a supply chain is to get the right products to the right place at the right time in the right condition. If there’s a disruption, one of those things isn’t happening,” explained Cheryl Druehl, a supply chain expert and professor at George Mason University’s School of Business.

“Our supply chains tend to be fairly long and have always been vulnerable but the pandemic made it more apparent. We had shutdowns across the world at varying times which caused significant delays and shortages and now as production recovers, the ports, logistics and trucking are all stressed,” Druehl added.

Butler said every year he pays for thousands of shipping containers to move product from manufacturing facilities in China to the United States.

“Since May, due to backups from Covid-19, it’s been a real struggle to just get containers,” Butler said, adding that he saw prices begin to climb in June.

“Last year we paid $2,000 to $3,000 for containers and this year we’re paying in the region of $20,000. We decided that we would pay the exorbitant rates that were being charged to make sure we got as many containers as we could,” Butler said, adding that he was short 1,000 containers but nearly 90% of his orders were fulfilled.

Butler said that this year consumers will potentially see a 25% price increase this year due to the hike in transportation costs.

Christmas trees loaded onto a truck for shipping at Downey Tree Farm and Nursery in Hatley, Quebec, Canada November 12, 2021.

Christinne Muschi | Reuters

Warner says it will also be difficult this year for consumers in the market for real Christmas trees thanks to a combination of supply chain disruptions and weather disasters influenced by climate change.

“Christmas tree growers also have shipping issues as well because they can’t find trucks to take the trees that they do have to market,” Warner explained when asked about potential tree shortages.

What’s more, while Christmas trees are farmed across the nation, the majority of America’s trees are from Oregon and Washington and have taken the brunt of extreme weather events.

“Floods, heat waves, wildfires and smoke from the fires has really, really hampered growers in the Pacific Northwest and the Midwest,” Warner said.

Christmas tree farmer Frans Kok, owner of Middleburg Christmas Tree Farm in northern Virginia, echoed similar concerns over the changing climate.

“Climate change is impacting all agriculture and in different ways,” he explained, adding that certain trees he once grew prevalently are now under siege by a fungus that emerged with changing weather conditions.

“And so, the price of trees is clearly going up and that’s in part because we are low on them,” he said, adding that this year he will pass on a $50 increase to consumers.

Still, Warner says not to panic.

“There will be a Christmas tree both real and artificial for everyone who wants to celebrate with one. It just may not be the exact kind, size or color you want,” she said, adding that consumers should aim to get their holiday shopping done as soon as possible.

ShareTweetPin

Related Posts

Investors are shifting into high-yield ETFs with a potential Fed pause on the horizon

by
June 9, 2023
0

Investors are beginning to stretch for yield as the Federal Reserve's rate-hiking cycle winds down, ETF flows data suggests. The...

$5.2 billion in cargo stuck off West Coast ports in truck and container bottleneck

by
June 9, 2023
0

A photo of Fenix Marine Services rail terminal on June 8, 2023, taken by a trucker. The "slow and go"...

Crypto tokens plunged this week after Gensler stepped up SEC crackdown

by
June 9, 2023
0

Gary Gensler, Chair of the U.S. Securities and Exchange Commission, takes his seat before the start of the Senate Banking,...

Trump charged with 37 counts in classified documents case, indictment says

by
June 9, 2023
0

A 37-count criminal indictment against Donald Trump was unsealed Friday, revealing allegations that the former president willfully retained hundreds of...

Carvana stock surge leaves short sellers sitting on $1 billion loss

by
June 9, 2023
0

S&P 500 4,298.86 +4.93(+0.11%)   Dow 30 33,876.78 +43.17(+0.13%)   Nasdaq 13,259.14 +20.62(+0.16%)   Russell 2000 1,865.71 -15.07(-0.80%)   Crude...

Next Post

Yellen says U.S. could hit debt limit on Dec. 15, giving Congress more time to strike deal

Biden vaccine mandate legal battle heads to federal appeals court with GOP-appointed majority

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Fund manager believes FAANG is dead — says now it’s all about MANTA

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Bank of America names its top global tech stocks — including one it says has upside of 100%

    0 shares
    Share 0 Tweet 0
  • This idiot-proof portfolio has beaten traditional stocks and bonds over 50 years

    0 shares
    Share 0 Tweet 0
  • Josh Brown says Nvidia’s potential is ‘scary’ ahead of a potential AI boom

    0 shares
    Share 0 Tweet 0
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.magicaltrade.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.magicaltrade.net