Weekly Update Week 32: Aug 9th – 13th

LCL Price Change – Effective Sep 9th 2021

As a result of rising costs in the supply chain, and particularly from shipping companies, we must in turn raise the pricing of our LCL program.  In April, we introduced the concept of an “emergency charge” to cover any and all increased shipping costs from shipping lines as well as stateside port and transportation vendors.   These emergency charges have morphed into a combination of two things: 1. General rate increases from the above vendors and 2. Continued additional emergency fees (shipping lines only).  In short, while we all hoped that global supply chain costs would fall back to more historical norms, unfortunately prices have continued to rise, and our shipping & transportation vendors have increased their base rates.   *See global freight index chart below.

In response to these increases as well as our own internal overhead increasing, we are raising the price of our LCL program by $2.48 per case to the East Coast and $2.11 per case to the West Coast.   The continued additional, emergency charges will be reduced in light of these LCL rate increases; however, you will continue to see $1.00- $2.00 per case charges while emergency charges continue to be levied by the shipping lines.

For more details and to see the full announcement, please click here.

News to Know

 

From the Guardian: “Days of wine and olives: how the old farming ways are paying off in Spain. The ‘no-plough’ regenerative methods adopted in small vineyards have spread to olive groves and leading wine producers – boosting biodiversity and profits.” This full article may be found here.

 

Direct Sales Buck Retail Wine Trend, click here for more details.

 

Climate Change Forces California Winemakers to Reconsider What Grapes Grow Where. For decades, the Winkler Index has helped winemakers determine the best places to grow different grape varietals. For the first time in over 75 years, it will be updated to accommodate changing climate conditions.

 

Agriculture rallies around shipping reforms. The Agriculture Transportation Coalition is endorsing a bill in the U.S. House of Representatives addressing what it says are unreasonable practices by ocean carriers that hinder exports of agricultural goods. On Tuesday, Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D., introduced the Ocean Shipping Reform Act of 2021 to establish reciprocal trade opportunities to help reduce the longstanding U.S. trade imbalance with China and other countries.