Costco Limits How Much Toilet Paper You Can Repurchase

“The factors that are putting pressure on supply chains and inflation include port delays, container shortages, Covid disruptions, shortages of various components, raw materials and ingredients, pressure on labor costs and shortages of trucks and drivers,” said Costco CFO Richard Galanti, speaking with investors after quarterly reporting. Thursday night results. “Several major brands require longer lead times and in some cases difficult to find drivers and trucks at short notice.”

Instead of just paying to carry containers of freight from Asia to North America, Costco has chartered three container ships, with each vessel capable of carrying 800 to 1,000 containers at a time. Costco expects the ships to make ten trips a year across the Pacific.

The shipping cost makes some items more expensive, adding to other inflationary pressures.

“Price increases of pulp and paper products, some articles [are] to 4% to 8%,” he said. Plastic items, such as garbage bags, Ziploc bags, disposable cups and plates have risen in the range of 5% to 11%. Non-durable metal items, such as aluminum foil and beverage cans are in the mid-range of single digits.

Costco reported slightly better-than-expected earnings for its fiscal fourth quarter ended August 29. Shares were narrowly higher in pre-market trading Friday on the report, and are up 20% so far this year.