Retailer Lidl establishes its own shipping company to address supply chain issues

German retail giant Lidl has set up its own shipping business, Tailwind Shipping Lines, to become the latest retailer to better control shipping requirements to address supply chain issues and high container shipping costs. I am.

last year, U.S. retail giant Wal-Mart reveals that it has chartered a vessel To mitigate supply chain problems that threaten the supply of goods It highlights the challenges faced by the fisheries industry when shipping products to customers and contract processors in remote time zones.

However, Lidl is one step ahead of its rivals and plans to operate its transportation lines under its own flag.

The supermarket chain has applied to the European Union Intellectual Property Office to use the Tailwind brand for freighter transportation, goods delivery, and freight transportation.

According to German media sources, Riddle, a member of Schwartz’s retail group, aims to have its vessels up and running by the middle of the year.

According to reports, Wolf Tiedemann, head of logistics at a German retailer, states that the goal is “more flexibility in managing the increased volume of various production facilities in the long run.”

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He told the trade magazine Lebensmittel Zeitung that the company would continue to work with its regular transportation partners, but would like to become more independent.

Lidl has made a move last year after failing to invest in its existing shipping business, the report said.

Details of the ship, route and departure frequency have not yet been provided by the company.

Desperate end user

Lidl is one of Europe’s leading retailers, with over 200 warehouses and distribution centers in 30 countries.

The move reflects the efforts of desperate end users who have tackled high fare and supply chain issues.

Intrafish Sister publication TradeWinds Also reports on a series of charter contracts and new shipbuilding transactions made directly between traditional liner customers and shipowners or shipbuilders.

Due to the shortage of container vessels, most of the vessels secured by retailers were multipurpose vessels and small bulk carriers.

  • Reefer: Refrigerated container
  • teu: A unit equivalent to 20 feet used to measure container size
  • feu: A unit equivalent to 40 feet used to measure container size
  • Panamax Vessel: The largest vessel that can pass through the Panama Canal, with a length of 200-250 meters (650-820 feet) and a capacity of 50,000-80,000 dry weight tons.

Most recently, Shenzhen-listed manufacturer Loctek has ordered a 1,800 teu container ship from the Yellow Sea Shipyard for $ 32.6 million (€ 29.9 million).

Other companies such as Ikea, Costco and Home Depot have previously chartered vessels directly.

Coffee chain Starbucks chartered MPP ships for voyages, and soft drink giant Coca-Cola chartered bulk carriers for palletized cargo of artificial sweeteners, usually shipped in boxes.

Since the global COVID-19 pandemic began more than two years ago, the seafood industry has suffered from rising shipping prices and reduced shipping options as companies from all industries have fought for space on board. ..

The crisis began in early 2020, with port congestion caused by COVID inspections and a surge in demand for goods and consumer goods shipped from China in particular, causing containers to get stuck in the wrong parts of the world from where they are needed. bottom. Retailer Lidl establishes its own shipping company to address supply chain issues

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