Walmart's Decision to Charter its Own Ships to Avoid Supply Chain
Disruptions
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To tackle major supply chain problems, Walmart began renting its own cargo ships
in 2021 and continued this into 2022. This move helped Walmart avoid shipping
delays and ensure that stores stayed stocked, especially during busy shopping times
like the holidays. By taking control of its shipping, Walmart aimed to provide
better service to customers and stay ahead of competitors.
The COVID-19 pandemic created big challenges for supply chains around the
world. Ports became congested, and there were shortages of shipping containers,
which made it hard for retailers to get the products they needed on time. For a large
retailer like Walmart, these problems highlighted weaknesses in traditional supply
chain networks. Instead of waiting for shared cargo ships that were often delayed,
Walmart decided to charter its own ships. This allowed them to manage their
shipments more effectively.
Motivation for Decision:

By renting its own ships, Walmart could set its own schedules and decide
how products were transported. This was important for avoiding delays at
crowded ports, particularly in Los Angeles and Long Beach, which faced
significant unloading backlogs.

Although chartering ships can be more expensive at first, Walmart believed
it would be worth it. By ensuring products were available on time, they
could maintain customer loyalty and increase sales during busy periods, such
as the holiday season. Keeping shelves stocked means customers are more
likely to shop at Walmart instead of competitors.

By directly managing its shipping logistics, Walmart could guarantee that its
stores had products available, even while other retailers faced similar
shipping problems. This gave Walmart an advantage in a crowded market,
where product availability can make a significant difference in sales.
Challenges Addressed:
1. One of the biggest issues in the supply chain was the long wait times at ports
and a lack of available shipping containers. By chartering its own ships,
Walmart could avoid some of these congested ports. This helped them get
products delivered faster and more reliably.
2. Traditionally, retailers relied heavily on established trade routes that often
became overloaded. Walmart’s decision to use its own ships allowed it to
manage the flow of goods better and choose routes that were less congested.
This flexibility made their supply chain more resilient against disruptions.
Walmart's decision could inspire other large retailers to consider similar strategies.
By taking control of its shipping logistics, Walmart set an example that may lead
other companies to explore chartering their own ships or finding alternative
shipping solutions. This shift toward more self-reliance in supply chains reflects a
growing trend among major corporations.
Long-Term Implications
If Walmart continues to use this strategy, it might change how other retailers think
about their shipping practices. Rather than focusing solely on cutting costs,
businesses may start prioritizing speed and reliability. This change could encourage
more companies to invest in dedicated shipping resources and explore new ways to
move their products.
Walmart’s approach also highlights an evolving trend in supply chain management,
where flexibility and control are becoming just as important as cost savings. In a
world where disruptions are becoming more common, retailers may increasingly
look for ways to ensure their shelves are stocked, even in challenging times.
Conclusion
Walmart's decision to charter its own ships shows how a big retailer can adapt to
unexpected supply chain challenges. By doing this, Walmart managed to avoid
delays and keep its products available, especially during crucial shopping seasons.
This strategy not only helped Walmart maintain its business but may also influence
how other retailers approach their supply chains in the future.