Furniture Company Orders Its Own Cargo Ship Worth $32 Million To Avoid Supply-Chain Crisis

Encountering extensive shipping delays plaguing enterprises worldwide, Loctek Furniture has made up its mind to solve its issue by purchasing its own container vessel. The vessel boasts the capacity to carry 1,800 20-foot containers. It is going to be delivered by March 2023.

In a regulatory filing with the Shenzhen stock exchange, a Chinese manufacturing company, popular for its ergonomic furniture and sit/stand desks, disclosed that it would be paying Huanghai Shipbuilding approximately $32.6 million to build the vessel.

The firm, however, has not specified whether it’d operate the vessel or pay a major shipping company to operate the vessel and carry Loctek products.

Loctek is one of many firms that came up with creative measures to sidestep massive shipping delays. In 2021, many major retailers had begun chartering cargo ships.

During 2021’s fall, Target, Costco, and even Coca-Cola revealed that they had started chartering bulk freighters, which are reserved typically for hauling raw materials like grains and coal.

In August last year, Walmart declared that it was chartering comparatively smaller vessels to prevent backlogs in Southern California’s ports. Home Depot and Lululemon informed investors that they would be more inclined to rely heavily on air cargo to deliver products timely.

Reference: furnituretoday.com

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Source: Maritime Shipping News