Freight Costs

I’m sure you’ve noticed the huge increase in freight costs on many of the items you purchase in order to return rooms from Out of Order. The cost of moving a 40 foot container from China to the Los Angeles is up 34% since the beginning of this year, and up 228% higher than the same period last year. The global supply chain issues are a result of the many side effects of COVID 19. Demand for many products not made in the U.S. has been up since last year, creating a shortage of product. Along with a container shortage in Asian ports comes even more issues getting product from China to the U.S. Freight is slow too because it sits in the port longer, waiting to be unloaded due to shortages in labor and the equipment used to unload containers. Then of course the rising fuel costs and you can see why we’re paying such high freight rates. Our vendors have been made aware that we expect them to seek the best value in freight for our RRI West properties. We continue to look for vendors who manufacture their products in North America, thus the introduction of the Danby combination refrigerator/microwave units this year which are made in Canada and warehoused in various locations in the U.S. We are committed to working to save you money wherever possible and appreciate your patience!