23 nov 2021 13:08 GMT

The executive director of Traeger Inc detailed that the price of shipments from Asia to the US increased in one year from approximately 1,500 to 10,000 dollars.

The increase in transportation costs of merchandise has caused different companies to have a drop in their profit margins, so some have tried to compensate for this deficit by increasing prices paid by end consumers, reports CNBC News.

According to the executive director of grill distributor Traeger Inc, Jeremy Andrus, moving a 40-foot container from Asia to the US cost $ 1,500 a year ago, but the current figures are much higher. “Today you are spending $ 30,000 and we are certainly averaging about 10,000 “Andrus assured.

In this sense, the businessman said that the products they sell occupy “a lot of space in the containers”, so the company is “particularly sensitive to transport costs.”

Regarding sales, the executive explained that during the third quarter there was a 11.7% year-on-year increase, with revenues that reached 162 million dollars. However, the 33.5% gross profit margin marked a drop of almost 12 points compared to the same period in 2020, when it reached 45.3%.

Despite this scenario, Andrus said that he estimates that high transportation costs will fall.

Meanwhile, Traeger’s shares reached their historic minimum of 14.03 dollars, with a fall of about 28% in the last five sessions. The company has chosen to absorb some of the rising transportation costs.

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