Return of empty shelves, panic buying

Walk around a supermarket in the US or Europe and you will see some empty shelves once more. This isn’t due to people panic-buying toilet paper, as they did early on in the pandemic; rather it’s because supply chains are clogged at almost every stage between Asian factories and grocery stock rooms.
But rising prices and patchy availability mean it’s only a matter of time before shoppers start purchasing in bulk again — this time to avoid future sticker shock.
Supply lines are struggling as producers such as Vietnam, responsible for making everything from sneakers to coffee, are hurt by Covid restrictions. Surging virus cases and consumer demand are leading to congested ports. Shipping containers are in the wrong place. Sea freight costs are up tenfold. If goods do arrive at the destined ports, there are too few truck drivers to transport them to retailers. Shortages of workers to harvest and prepare foods are also adding to the pressures.
Some sectors are bearing the brunt worse than others. Beverages, for example, have been hurt by a shortage of packaging including aluminum cans. In Britain, a lack of C02 amid spiraling energy costs has also put supplies of carbonated soft drinks at risk. In some areas, issues have been compounded by elevated demand. Coffee and tea are hot commodities as many Americans continue to work remotely. Why visit Starbucks Corp when you can still be a barista at home?
Meanwhile, in-person learning has fuelled a rush for school supplies, including those that go in lunchboxes. Following a year quaintly characterised by home-baking and the return of family dinners, parents are now in a frantic state because of a run on Kraft Heinz Co’s pre-packaged Lunchables. Kraft Heinz said the almost-charcuterie-board-like snack packs are experiencing double-digit growth for the first time in five years.
Pet food is another challenging area. Purina maker Nestle SA has already ramped up capacity. Some grocers are reporting a struggle to find enough cat biscuits to meet the demand from all those new pandemic pets. Retailers have been reengineering their supply chains to avoid the pinch points. Some, including Walmart Inc and Target Corp, have been chartering their own ships. Amid a shortage of drivers, some British supermarkets are using their own trucks for deliveries that previously would have been carried out by suppliers.

—Bloomberg