KANSAS CITY, Mo. — Sit back and savor that cup of coffee. You may soon be looking at it a little differently.
Coffee prices are about to skyrocket according to a report from TD Economics.
The economy experts site increase in shipping costs and a shortage of supply for the reason behind the increased costs.
The problem started last year when the global economy shrank because of the COVID-19 pandemic. TD said thousands of shipping containers were stranded. As the economy reopened, shipping costs tripled.
Add in the ship that ran aground and blocked the Suez Canal for six days earlier this year, and it put even more demand on an already stretched coffee supply. Cargo ships that normally used the canal had to make long detours and added days and weeks to shipping routes.
Coffee roasters in Kansas City say they’re bracing for what’s next.
Broadway Cafe and Roasting said it’s had trouble getting coffee from suppliers. It said the issue in the Suez Canal extended delivery times by two or three months.
The company hopes to be able to adsorb the increased costs without having to raise prices. But, the roaster warns if coffee prices skyrocket, customers may see a slight increase.
TD Economics said the longer the issues last, the more impact it will have on coffee drinkers.
Coffee isn’t the only product impacted by the shipping issues. Furniture, electronics, appliances and lumber are just some of the products that are in short supply right now.