GRAND RAPIDS, Mich.- Christmas tree farmers are projecting supply chain constraints and increased costs ahead of the 2021 holiday season. Even though the holidays are a few months away, Christmas tree vendors are predicting the possibility of increased costs due to COVID-19.
The demand for Christmas trees this year could mean a decrease in profit for retailers and farmers. This will be the second consecutive year experts say the pandemic could have an economic impact on the seasonal good. Industry experts are concerned about the number of employees able to cut down trees along with concern towards the number of carriers available to move loads.
Causes
- Labor shortages
- Freight costs spike
- Increased overhead
- Increased transit times
Where are Christmas Trees Grown?
The largest Christmas tree growing states varies across the United States. Oregon grows 8.5 million trees annually, North Carolina, 5.4 million trees annually, Michigan, 1.3 million trees annually, along with Pennsylvania, Wisconsin and Washington.
According to the University of Illinois Extension, Michigan ranks third among all states in the production of live Christmas trees, but grows a larger variety compared to any other state.
How Loads are Moved
Christmas trees require specific shipping conditions. Trees are either moved in Dry Vans or Refrigerated trucks with temperature control. The general rule of thumb when shipping trees is to deliver them as efficiently as possible.
According to the National Christmas Tree Association (NCTA):
- Approximately 25-to-30 million live Christmas trees are sold in the U.S. each year.
- There are close to 15,000 farms growing Christmas trees in the U.S.
- For every Christmas tree harvest, 1-to-3 seedlings are planted in the spring.
Costs Expected to Rise
Following the pattern of labor shortages this year, the price of shipping and freight will potentially play a factor in moving trees. The rise in online shopping during the pandemic has increased freight costs, which has pushed the tree industry to pay more in overhead for commodities such as fertilizer and netting.
The number of miles a truck has to drive and the amount of diesel fuel used to move trees also contributes to the overall price of shipping. This will project to mostly impact organizations and retailers that have to pay for inventory shipping.
FWF’s Elite Service
With FWF’s industry-leading service and reliability, our shipping services allow transporting Christmas trees to be on-time and delivered as safely as possible. We aim to create long-term relationships with customers, carriers, and vendors built through unparalleled service.
Through our extensive carrier network, we match the right carrier for every load. We secure capacity with the safest and most reliable trucking companies in the industry.
Our advanced transportation management system, experts, and pre-qualified carrier network allow close monitoring throughout your supply chain.
Overview
At FWF, we focus on trustworthy and honest communication to guarantee your shipments are handled with industry-leading service and reliability.
FWF solidifies the most vital link in your supply chain by connecting suppliers with consumers in industries across North America.
