- Coca-Cola is going to great lengths to transport materials by using bulk shipping vessels.
- Bulk shipping vessels are typically used for raw materials like grain and coal.
- The ongoing shipping crisis has caused major supply chain disruptions, making many goods harder to find and more expensive.
- See more stories on Insider's business page.
Coca-Cola is going to great lengths to transport materials by using bulk shipping vessels amid the ongoing shipping crisis.
The carriers, which are normally used for loose goods such as grain, coal, and other raw materials, were chosen because the beverage company could not get the shipping containers and cargo space needed for transportation, Alan Smith, the procurement director of global logistics at Coca-Cola wrote in a post on LinkedIn. The company is currently using three of these ships to transport manufacturing materials.
Due to shortages delaying transportation, and in extreme cases halting it altogether, companies like Coca-Cola have had to get creative with the transportation of goods and materials across the world.
Retailers like Costco and Target have chartered their own cargo ships, finding creative ways to combat these issues, but ports are still backed up causing mass delays because of the ongoing labor shortage and the increasing number of ships back on the ocean.
Coca-Cola is attempting to avoid major ports to further prevent delays, according to comments on Smith's post.
"For these we are heading to some non-congested ports so we are hoping for a smooth discharge," Smith wrote. "Good coordination is vital on both the planning and the operations side for loading and discharge."
Smith did not respond to Insider's request for comment on the vessel before publishing.
Some, noticing Smith's post have made note of it on social media, recognizing that this mode of transporting materials is abnormal for a company like Coca-Cola.
—Dooner 🏴☠️ (@TimothyDooner) October 1, 2021
"No container, no problem," one user wrote on Twitter. "No, this isn't normal and it isn't really a great sign either."
The ongoing supply chain crisis combined with shipping delays have already created shortages and price hikes across the country. In September, Coca-Cola's New York distributor said it's having a hard time recruiting truckers, further disrupting the supply chain, Insider reported. Other goods and products like paper, Nike sneakers, toilet paper, computer chips, and plastic goods are also in short supply as manufacturers try to meet demand amid the delays.