IT’S ABOUT TO
GET WEIRD Another new normal for the supply chain
M
anufacturing stoppages,
B.C. “We placed our order for glass
shipping shortages, and
in August and we’re hoping to get it
supply chain disruptions
in time for bottling in July,” she says.
are already causing
“We’ll need to put our order in now
bottlenecks and backlogs in ports
for next year at a time when we don’t
around the world resulting in
even know what grapes we’ll have.”
massive delays in all sectors of the economy.
With factories oversees still not back to full operating capacity since before
The global pandemic was the first
the pandemic, production remains
big kink in the supply chain, with
significantly low and producers are
the temporary closures of many
faced with major delays, increased
manufacturing facilities overseas.
freight charges, and higher costs to
Major weather events paralyzed
produce.
transport routes, and a big ol’ ship – one of the largest container ships ever built - famously wedged itself in the Suez Canal plugging up worldwide shipping for six days and freezing nearly $10 billion in trade per day. All this showed the fragility of our supply chain and the power of the ripple effect.
“In our industry, we are seeing cost increases on almost all materials, including glass, bottles, labels, and glue, on top of freight increases and additional surcharges,” says McWatters, adding that freight surcharges have increased drastically. For example, glass shipments arriving from China will
Those in the winery industry are
see a 30-40 per cent surcharge for
definitely feeling the squeeze. With
fuel, and shipping containers are now
harvest season approaching, the
three times the cost of what they
pressure in on to ensure wineries
were before the pandemic. She also
have packaging and material to
says finished goods being shipped to
produce and get their products to
customers domestically are getting a
market.
55 per cent fuel surcharge on top of
“It’s a huge challenge and so many
Bailey Williamson, Blue Grouse Estate Winery.
freight charges.
businesses are affected by the
“Every supplier is dealing with the
current condition of the supply
same issue because a lot of the
chain,” says Christa-Lee McWatters,
materials are not domestically
TIME Family of Wines in Penticton,
produced,” she says.
Christine Coletta, Okanagan Crush Pad Winery. Credit: Jon Adrian.
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